The auditor has specific audit responsibilities when he issues an audit report on financial statements prepared in accordance with a financial reporting framework that is generally accepted in another country.These responsibilities apply only to audit reports issued on statements prepared in accordance with a financial reporting framework that has not been recognized by the council of the AICPA in the U.S.The financial reporting frameworks recognized in the U.S.include
A)the Cost Accounting Standards Board
B)the Financial Reporting Standards Board
C)the American Accounting Standards Board
D)the Federal Accounting Standards Advisory Board
E)the International Accounting Standards Board
F)both A and B
G)both C and E
H)Both D and E

Question

Quizplus · Accepted Answer

The Federal Accounting Standards Advisory Board and the International Accounting Standards Board are both recognized financial reporting frameworks in the U.S. Choice A is incorrect because the Cost Accounting Standards Board does not issue financial reporting standards. Choice B is incorrect because there is no such entity as the Financial Reporting Standards Board. Choice C is incorrect because there is no such entity as the American Accounting Standards Board. Choice D is incorrect because only one of the frameworks listed under "H" is recognized in the U.S.

The Auditor Has Specific Audit Responsibilities When He Issues an Audit