Bill Jones, the president of AMTO, a nonpublic audit client of your firm, has come to you and indicated that his company established a subsidiary in the country of Laos this year and that he wants your firm to issue an audit report on that subsidiary for use in Laos for various purposes.
The financial statements should follow Laotian generally accepted principles. Answer the following questions relating to thissituation.

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Question Yes No 1. Is this considered an audit of financial statements using a special-purpose 2. In performing the audit, must your firm consider GAAS to the extent the 3. If the financial statements are intended for use only outside the United financial reporting framework? standards are appropriate? States, must an audit report include an opinion on whether U.S. GAAP are followed? 4. If the resulting audit report will be used extensively both in the United States and in Laos, must the report include an opinion on whether U.S GAAP are followed? 5. If Laotian generally accepted auditing standards do not require the Lao- tian form of audit report, may your firm use the U.S. report form and modity it as necessary? tian form of audit report, may your firm use the Laotian report form? statements are intended solely for certain specified users? 6. If Laotian generally accepted auditing standards do not require the Lao- 7. Must a paragraph be added to the report indicating that the financial