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Dear Tutor,
If as passive duty, the auditor becomes aware of certain event that would require revision and reissue of financial statements and accordingly he tries to pursuade the directors to reissue the same. However if the directors refuse to revise the financials then in such case what is it that the auditor is supposed to do?Please remember to post your questions to the ask ACCA tutor forum if you specifically want a tutor response https://opentuition.com/forum/ask-acca-tutor-forums/
The auditor would consider any legal rights or obligations to inform the shareholders that the audit opinion cannot be relied on (e.g. to speak at a general meeting). An auditor would have such rights in many jurisdictions including the UK. If none, the auditor would probably need to take legal advice on what, if anything, can be done to reduce the risk of liability.
However, you should appreciate that this is an extremely rare situation in the real world. • Audited financial statements are published more than a few months after the reporting date (e.g. UK public companies must file accounts within 6 months), so it is highly unlikely that something would happen so long after the year end that would be of such significance that it would call for the amendment of the financial statements.
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