What are the auditors alternatives

Assignment Help Accounting Basics

Reference no: EM13136100

On discovery of an omitted procedure, the auditor should assess its importance to his or her ability to currently support the opinion expressed on the financial statements. A review of the working papers and a reevaluation of the overall scope of the audit may enable the auditor to conclude that he or she can still support the previously expressed opinion. Alternatively, AU 390.05, Consideration of Omitted Procedures after the Report Date, indicates that if the auditor decides that the opinion cannot be supported and he or she believes persons are currently relying on the report, the auditor should promptly perform the omitted procedures or alternative procedures that would provide a satisfactory basis for the opinion.

When a satisfactory basis for an opinion is obtained and the evidence supports the opinion expressed, the auditor has no further responsibility. However, if the performance of the omitted procedures reveals facts existing at the report date that would have changed the previously expressed opinion, the auditor should follow the notification procedures described in the last paragraph of the preceding section to prevent further reliance on the report. If the auditor is unable to perform the omitted or alternative procedures, he or she should consult an attorney to determine an appropriate course of action.

QUESTION:

When such an event occurs and is appropriately reflected in the financial statements, what are the auditor's alternatives with respect to dating the audit report and the conditions applicable to each alternative?

Reference no: EM13136100

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