Essay about Auditing Reports Mba

2133 Words Apr 26th, 2014 9 Pages
Audit 8
Subsequent Discovery of Facts existing at the date of auditors report
Auditor’s Report
This report addresses the auditor's responsibilities relating to subsequent events and subsequently discovered facts in an audit of financial statements. It also addresses a predecessor auditor's responsibilities for subsequent events and subsequently discovered facts when reissuing the auditor's report on previously issued financial statements that are to be presented on a comparative basis with audited financial statements of a subsequent period. In addition this report also incorporates management representation and consideration of an entity’s ability to continue as a going concern. There may be times when new information may come to an
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However, if new information is brought out that can affect the report then the auditor may reopen that particular situation. If an in some instance this should happen the auditor should discuss the matter with his client at whatever management levels they deem appropriate, including the board of directors.
Subsequently discovered
As described in the PCAOB, when the subsequently discovered information is found both to be reliable and to have existed at the date of the auditor's report, the auditor should take action in accordance with the procedures set out in subsequent paragraphs if the nature and effect of the matter are such that if the effect on the financial statements or auditor's report of the subsequently discovered information can promptly be determined, disclosure should consist of issuing, as soon as practicable a revised financial statements and an updated auditor's report. The reasons for the revision should be described in an appendix to the financial statements and referred to in the auditor's report as a highlighted or bold update. Generally, only the most recently issued audited financial statements would need to be revised, even though the revision resulted from events that had occurred in prior years. When the effect on the financial statements of the subsequently discovered information cannot be determined without a

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