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Hello Tutor,
Could you kindly explain – Subsequent evenst after the financial statements are issued – here if the management amends the F/S and the auditor issue a new auditor’s report, it should include an EOMP or OMP.
But why in Subsequent Events” between auditor’s report and F/S issue date” , when auditor issues a new report why EOMP or OMP is not included here?
Thank you.
In the first of your scenarios there is a new auditor’s report on amended financial statements: this should include “a statement in an Emphasis of Matter paragraph or Other Matter paragraph that conveys that the auditor’s procedures on subsequent events are restricted solely to the
amendment of the financial statements as described in the relevant note to the
financial statements.”There is nothing in your 2nd scenario to indicate that the financial statements are amended. If the auditor has signed the auditor’s report, the issue of the financial statements is in management’s hands. This is a rather hypothetical situation – in practice the signing of the auditor’s report will be followed by management’s authorisation for issue – with not enough time for a subsequent event in between (!)
Hello Tutor,
Kaplan book – Subsequesnt events
”Between the date of the auditor’s report and the date the financial statements are issued”:
This will normally be in the form of asking the client to amend the financial statements, auditing the amendments and reissuing the auditor’s report. (My question is why here EOMP or OMP is not included in auditor’s report).
Because the original auditor’s report on the original financial statement has not been issued – so there is no need to draw attention to amendments.
And if the auditor’s report is handed over to the client? then wouldn’t they reissue a new report?
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