Choice "C" is correct. In an audit of financial statements prepared in accordance with a financial reporting framework generally accepted in another country, the auditor should obtain an understanding of the applicable legal responsibilities involved if the auditor plans to use the form and content of the auditor's report of another country. The auditor should also obtain an understanding of the purpose for which the financial statements are prepared; whether the financial reporting framework is a fair presentation framework; the intended users of the financial statements; and the steps taken by management to determine whether the applicable financial reporting framework is acceptable in the circumstances.
Choice "a" is incorrect. The auditor practicing in the U.S. would be able to report on the financial statements of the U.S. entity without obtaining certification in the other country.
Choice "b" is incorrect. The auditor need not disclaim an opinion on the financial statements prepared in accordance with a financial reporting framework generally accepted in another country.Choice "d" is incorrect. A waiver to perform the engagement is not necessary.