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"AICPA Standards," not SSARS.
Choice "c" is incorrect. The report does not make reference to "opinion-shopping," nor does it state that
the evaluation is hypothetical.
Choice "d" is incorrect. The report's use is restricted to "specified parties," which may include parties
other than management (e.g., the board of directors). Also, the preparers of the financial statements and
the reporting accountant should consult with the entity's continuing accountant.
A U.S. entity prepares its financial statements in conformity with accounting principles generally accepted
in another country. These financial statements will be included in the consolidated financial statements of
its non-U.S. parent. Before reporting on the financial statements of the U.S. entity, the auditor practicing
in the U.S. should:
a. Notify management of the U.S. entity that the auditor is required to disclaim an opinion on the
b. Receive a waiver to report on the U.S. entity from the appropriate accountancy authority in the other
c. Obtain written representations from managem...
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- Fall '12