Statement on auditing standards, 051

              Statement on
Auditing Standards
Issued by the Auditing Standards Board
AICPA American Institute of
Certified Public Accountants
July 1986
51
Reporting on Financial Statements
Prepared for Use in Other Countries
1. This statement provides guidance for an independent auditor
practicing in the United States who is engaged to report on the finan­cial
statements of a U. S. entity that have been prepared in conformity
with accounting principles generally accepted in another country for
use outside the United States. 1 A " U. S. entity" is an entity that is either
organized or domiciled in the United States.
Purpose and Use of Financial Statements
2. A U. S. entity ordinarily prepares financial statements for use in
the United States in conformity with accounting principles generally
accepted in the United States, but it may also prepare financial state­ments
that are intended for use outside the United States and are pre­pared
in conformity with accounting principles generally accepted in
another country. For example, the financial statements of a U. S. entity
may be prepared for inclusion in the consolidated financial statements
of a non- U. S. parent. A U. S. entity may also have non- U. S. investors
or may decide to raise capital in another country. Before reporting on
financial statements prepared in conformity with the accounting prin-
1See paragraph 7, however, for a discussion of financial statements prepared in con­formity
with accounting principles generally accepted in another country for limited
distribution in the United States.
Copyright © 1986 by the
American Institute of Certified Public Accountants, Inc.
1211 Avenue of the Americas, New York, N. Y. 10036- 8775
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