Question: 38. After issuing an auditors report, an auditor becomes aware of facts that existed at the report date that would have affected the report had

38. After issuing an auditor’s report, an auditor becomes aware of facts that existed at the report date that would have affected the report had the auditor known of the facts at the time. What is the first thing the auditor should do?

a. Notify each member of the board of directors that the auditor’s report may not be associated with the financial statements from this point forward.

b. Issue revised financial statements and auditor’s report describing the reason for the revision in a note to the financial statements.

c. Determine whether there are persons currently relying on, or likely to rely on, the financial statements and whether those persons would attach importance to the information.

d. Notify regulatory agencies having jurisdiction over the client that the auditor’s report should not be relied upon from this point forward.

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