If the auditor decides that steps should be taken to prevent further reliance on the financial statements and audit report due to subsequent events after issuance of the audit report,the auditor should not try to obtain client cooperation,but should immediately notify any regulatory agency having jurisdiction over the client,such as the SEC,that the audit report should no longer be associated with the client's financial statements.

Question

Quizplus · Accepted Answer

The auditor should first attempt to obtain the client's cooperation in preventing further reliance on the financial statements and audit report. Notifying regulatory agencies is a further step if client cooperation is not achieved or if such notification is required by law or regulation.

If the Auditor Decides That Steps Should Be Taken to Prevent