[benboccio]

When an independent U.S. auditor is engaged to report on financial statements prepared for use in another country, the auditor should perform audit procedures that are necessary to comply with:

A.
only auditing standards generally accepted in the United States in all cases (modified as necessary).

B.
U.S. GAAS and the auditing standards of the other country or International Standards on Auditing (ISAs) in all cases.

C.
only the auditing standards of the other country or International Standards on Auditing (ISAs) in all cases.

D. (CORRECT)
U.S. GAAS and the auditing standards of the other country or International Standards on Auditing (ISAs) when specifically requested to do so.

Why should the auditor perform procedures to comply with US GAAS?

AU-C 910.11 states, “If the auditor is engaged to audit financial statements prepared in accordance with a financial reporting framework generally accepted in another country, and the agreed-upon terms of engagement require the auditor to apply either the auditing standards of that country or International Standards on Auditing (ISAs), the auditor should obtain an understanding of and apply those relevant auditing standards, as well as GAAS….”