After the financial statements have been issued, if a 'subsequent discovery of facts occurs' (the auditor becomes aware that some information in the statements is materially misleading), the auditor should ask the client to issue an immediate revision.This is required only if:
A) management makes the discovery and informs the auditor.
B) the discovery of facts relates to developments that occurred after the date of the auditor's report.
C) the facts discovered already existed at the audit report date.
D) the auditor makes the subsequent discovery of facts himself or herself.

Question

Quizplus · Accepted Answer

The auditor should ask for a revision if the facts discovered existed at the audit report date, as they would have affected the auditor's report had they been known.

After the Financial Statements Have Been Issued, If a 'Subsequent