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 Accounting Standards Board
C)the Governmental Accounting Standards Board
D)the American Accounting Standards Advisory Board
E)the International Reporting Standards Board
F)both A and B
G)both B and C
H)both D and E

Question

Quizplus · Accepted Answer

The financial reporting frameworks recognized in the U.S. include the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB). The other options given (Cost Accounting Standards Board, American Accounting Standards Advisory Board, International Reporting Standards Board) are not currently recognized by the AICPA in the US. Therefore, the specific audit responsibilities mentioned in the passage apply only to statements prepared in accordance with a framework other than FASB or GASB.

The Auditor Has Specific Audit Responsibilities When He Issues an Audit