Loki, an accountant, concludes an audit of Medical Equipment Company (MEC) by issuing an opinion letter that states the financial statements accurately reflect MEC's financial position. Later, Loki discovers that the opinion was based on inaccurate data. In light of the court's decision in Overton v. Todman & Co., CPAs, with respect to the opinion Loki presumably has

Question

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According to the court's decision in Overton v. Todman & Co., CPAs, an auditor has a duty to correct a previously issued opinion if it is discovered that the opinion was based on inaccurate data. This duty exists regardless of whether the auditor was responsible for the inaccurate data. As such, Loki has an ethical duty to correct the opinion and notify MEC of the inaccuracies.

Loki, an Accountant, Concludes an Audit of Medical Equipment Company