Final answer:
The international audit report requires inclusion of the city of the CPA firm office that performed the audit. The correct answer is option (d), which states that the international audit report includes an opinion on internal control.
Step-by-step explanation:
The correct answer is c. The international audit report requires inclusion of the city of the CPA firm office that performed the audit.
When comparing the AICPA audit report to the international audit report, one difference is that the international audit report may use the phrase "true and fair view" (option a). Another difference is that the international audit report may be signed using the personal name of the audit partner, the audit firm, or both (option b). However, option c is not a difference as both the AICPA and international audit reports require the inclusion of the city of the CPA firm office that performed the audit.
Option d is also incorrect as the international audit report does not include an opinion on internal control. This is a difference between the AICPA audit report and the international audit report. The AICPA audit report includes an opinion on internal control, while the international audit report does not.
The correct answer is option (d), which states that the international audit report includes an opinion on internal control. This is not a difference because international audit reports, under International Auditing Standards, do not provide a separate opinion on internal controls like AICPA reports for public companies due to Sarbanes-Oxley requirements.
The student is asking about the differences between audit reports as prepared under the standards of the American Institute of Certified Public Accountants (AICPA) compared to those under International Auditing Standards. Specifically, the question is identifying which statement is not a difference between the two types of audit reports.
Option (a) The international audit report may use the phrase "true and fair view", which is correct as it is a phrase commonly used internationally and reflects the language in International Financial Reporting Standards (IFRS).
Option (b) states that the international audit report may be signed using the personal name of the audit partner, the firm, or both, which is also a correct statement as this practice does vary based on jurisdiction but is allowed under International Standards.
Option (c) indicates that the international audit report requires the inclusion of the city of the CPA firm office that performed the audit. This is a requirement for AICPA's audit reports but not specifically for international audit reports.
Lastly, option (d) suggests that the international audit report includes an opinion on internal control. This is incorrect as International Standards on Auditing (ISA) focus on the financial statements, and while the auditors may consider internal control, they do not provide a separate opinion on it as is required for public companies under U.S. standards for Sarbanes-Oxley Act audits.
Therefore, the correct answer is option (d), international audit reports do not include an opinion on internal control.