Question

What auditing standards should an audit firm follow when they audit a client located in a...

What auditing standards should an audit firm follow when they audit a client located in a foreign country that is listed on both a foreign stock exchange and a U.S. stock exchange?

Homework Answers

Answer #1

If an auditor is conducting an audit of a client who is in a foreign country location yet it is listed on the both foreign stock exchange as well US Stock exchange - the auditor in such cases is under dual responsibility of following and complying with Auditing standards and legal requirements of US securities laws and standards issued by PCAOB as well as foreign security laws and auditing standards issued by apex auditing regulatory body of that foreign country.

Please note that this increase in responsibility and compliance has to be clearly communicated to stakeholders while presenting the audit report.

For example, NYSE has separate listing requirements for companies under dual listing which is NYSE listed as well as listed in foreign exchange.

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