Subsequent to the issuance of an auditor's report, the auditor became aware of facts existing at the report date that would have affected the report had the auditor then been aware of such facts. After determining that the information is reliable, the auditor should next:

Question

Quizplus · Accepted Answer

Choice "A" is correct. When subsequently discovered information is found both to be reliable and to have existed at the date of the auditor's report, the auditor should determine whether there are persons relying or likely to rely on the financial statements who would attach importance to the information. Choice "B" is incorrect. The auditor would request that management disclose the newly discovered information only after determining whether there are persons relying on the information. Choice "C" is incorrect. Management, not the auditor, may issue revised financial statements. Choice "D" is incorrect. The auditor would give public notice that he/she is no longer associated with the FS only after determining that there are persons relying on the information and only if the client refuses to issue revised FS.

Subsequent to the Issuance of an Auditor's Report, the Auditor