If, subsequent to issuing a report, the auditor discovers information that existed at the report date and materially affects the financial statements, what actions should the auditor take if the auditee consents to disclose the information? What action should be taken if the auditee (including the board of directors) refuses to make disclosure?
Answer to relevant QuestionsAfter the audit report has been issued, someone discovers that the auditee had a material, unrecorded bank loan outstanding at year-end. There was no confirmation requested from that bank as the auditors were not aware of ...Why are auditors’ drafts of adjusting entries and note disclosures near the end of the audit always labelled “proposed”?Breton Inc. manufactures industrial lighting fixtures with two main product lines: interior and exterior fixtures. The fixtures are sold with a one-year warranty on parts and labor. During 20X0, Breton’s engineering group ...What three types of engagements can produce an auditor’s written internal control report intended for external use? Describe the reports in general terms.Two PAs are discussing review engagements.A: As I see it, in a review we are providing a lower level of assurance, so we don’t need the same extent of knowledge of the client’s business and industry as we do in an ...
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