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- November 19, 2017 at 7:03 am #416551
Hi sir, for June 2015 exam question 9 , the explanation regarding point (2) in the answer key is confusing. They said that if an event occurs after the financial statements have are issued, the auditor has already signed the audit report and so is not able to now include a qualified opinion.
But in my textbook, regarding the auditor’s responsibilities for subsequent events after the financial statements are issued,
It states that, ” if management refuses to recall and amend the financial statements , the auditor shall take action to prevent reliance on the auditor’s report.
Since a new financial statement will not be re-issued, a new auditor’s report will not be re-issued. Therefore, the auditor shall take action to prevent reliance on the existing auditor’s report because the auditor’s opinion does not fully reflect all the events.
Is my understanding correct ?
November 19, 2017 at 9:40 pm #416760If the directors do not issue corrected FS, auditors would have to write to shareholders explaining the problem.
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