Subsequent to the issuance of the auditor's report, the auditor became aware of facts existing at the report date that would have affected the report had the auditor then been aware of such facts. After determining that the Information is reliable, the auditor should next: Multiple Choice Notify the board of directors that the auditor's report must no longer be associated with the financial statements. Determine whether there are persons relying or likely to rely on the financial statements who would attach importance to the information Request that management disclose the effects of the newly discovered Information by adding a footnote to subsequently issued financial statements Issue revised pro forma financial statements taking into consideration the newly discovered information

Subsequent to the issuance of the auditor's report, the auditor became aware of facts existing at the report date that would have affected the report had the auditor then been aware of such facts. After determining that the Information is reliable, the auditor should next: Multiple Choice Notify the board of directors that the auditor's report must no longer be associated with the financial statements. Determine whether there are persons relying or likely to rely on the financial statements who would attach importance to the information Request that management disclose the effects of the newly discovered Information by adding a footnote to subsequently issued financial statements Issue revised pro forma financial statements taking into consideration the newly discovered information

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter15: Audit Reports For Financial Statement Audits

Section: Chapter Questions

Problem 4CYBK

See similar textbooks

Related questions

Q: JE for A?

A: Here asked for the journal entry related with the construction of library and its total proceedings…

Q: Solution is totally wrong

Q: 2. Define and describe a conflict of interest.

A: Solution Concept Conflict of interest The term conflict of interest means when there…

Q: Required:

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: pls hlp

A: Given, Market Price = $21

Q: answer is incorrect, pls recheck

A: Statement of Comprehensive Income: Comprehensive income is a measure of the changes in owners'…

Q: Why option A is incorrect?

A: revenue is generated by the business whenever goods or services are sold by the business.this leads…

Q: Use of CAATs?

A: Computer Assisted Audit Techniques or CAATs can be characterized as an auditing strategy that…

Q: What is the primary difference between the APT and the CAPM?

A: APT is an abbreviation used for arbitrage Pricing Theory whereas CAPM is an acronyms used for…

Q: What are some types of divestitures?

A: A divestiture or divestment is the disposal of the company’s assets or a through sale, exchange,…

Q: Why woul it not be Schedule B

A: The Internal Revenue Service requires most payments of interest income to be reported on tax form…

Q: 6. __________ entail the creation of a third-party legal entity, whereas __________ do not.

A: A joint venture is a form business agreement under which two or more parties collaborate to…

Q: Wrong Answer

A: The cost of purchase is $1800 on October 23. It can be done using one of the two credit cards a)…

Q: Understated, Overstated or No Effect?

Q: Jerry Isaacs could amort

A: First month balance: New balance = Opening balance - Principal New balance = $8000 - $296.59 New…

Q: THE SMITH COMPANY Using the business transactions below, complete T-accounts for the Smith Company.…

A: Journal entry: A journal entry is used to record day-to-day transactions of the business by debiting…

Q: Help me question 1a

A: Internal controls can be defined as the process of assuring the objectives of the organization by…

Question

None

Subsequent to the issuance of the auditor's report, the auditor became aware of facts existing at the report date that would have affected the report had
the auditor then been aware of such facts. After determining that the Information is reliable, the auditor should next:
Multiple Choice
Notify the board of directors that the auditor's report must no longer be associated with the financial statements.
Determine whether there are persons relying or likely to rely on the financial statements who would attach importance to the information.
Request that management disclose the effects of the newly discovered Information by adding a footnote to subsequently issued financial
statements
Issue revised pro forma financial statements taking into consideration the newly discovered information

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Defining Auditors Report

VIEW

Step 2: Evaluation of options

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

After the audit report release date, auditors determine that an important auditing procedure was omitted. Which of the following initial courses of action is most appropriate?a. Perform the omitted procedure or an alternative procedure.b. Notify the board of directors and regulatory agencies that are currently relying on auditor’s reports.c. Determine whether the omitted procedure is important in supporting the auditor’s opinion on the entity’s financial statements.d. Engage another public accounting firm to conduct a quality assurance review.
Which of the following statements, relating to the auditor's responsibilities regarding subsequent events, if any, is/are correct? (1) Auditors do not have a responsibility to perform procedures to identify subsequent events after the date of the auditor's report(2) Where a material adjusting subsequent event is identified after the financial statements are issued, but prior to approval by the shareholders, the auditor should includeja qualified opinion in their audit report if management refuses to adjust the financial statements for the event a. 1 only b. Neither 1 nor 2 c. 2 only d. Both 1 and 2
Before issuing a report on the compilation of financial statements of a non-public entity, the accountant should: a. Apply analytical procedures to selected financial data to discover any material misstatements. b. Corroborate at least a sample of the assertions management has embodied in the financial statements. c. Inquire of the client's personnel whether the financial statements omit substantially all disclosures. d. Read the financial statements to consider whether the financial statements are free from obvious material errors.
What are the auditor’s responsibilities to communicate information to the audit committee under PCAOB standards? If the auditor discovers that the audit committee routinely ignores such communications especially when they are critical of management’s use of GAAP in the financial statements, what step(s) might the auditor take at this point?
When an auditor uses the work of an expert, who has the responsibility for arriving at an overall conclusion regarding the fair presentation of a client's financial statements? a) the auditor b) the expert c) the client's management d) the client's audit committee
Which one of the following is other indicator or events or conditions that may cast significant doubt continue as a going concern? the entity's ability If the auditor found misstatements in financial statements resulting from fraud, the auditor encounters exceptional circumstances that bring into question his ability to continue performing the audit. the auditor shall : Ask the management for his withdrawal. Determine the professional and legal responsibilities applicable in the circumstances. Withdraw from the engagement immediately. Report to audit team regarding withdrawal. If the auditor identify and assess the risk of material misstatement due to fraud or error relating entity's related activities auditor shall: 1. Inquiry with management and others within the entity. Auditing EN
The auditors determined that the entity is suffering financial difficulty and its going-concern status is seriously in doubt. Assuming that the entity adequately disclosed this matter in the financial statements, the auditors must choose between which of the following auditors’ report alternatives?a. Unmodified opinion with a reference to going-concern or disclaimer of opinion.b. Standard (unmodified) report or a disclaimer of opinion.c. Qualified opinion or adverse opinion.d. Standard (unmodified) report or adverse opinion.
Select the necessary words from the list of possibilities to complete the following statements: adverse, basis for modification paragraph(or basis for qualified opinion paragraph, CPA firm, disclaimer of opinion, expressing an opinion, management, unmodified, unqualified, update Statements Answer 1. If the auditors have examined the prior year's financial statements presented for comparative purposes, they should __________ their opinion for any new information. 5. All nonpublic company audit reports that are qualified should contain a(n) __________ explaining the details of the qualification.
Under preconditions of an audit, the management shall provide the auditor with the following, except: Group of answer choices b. Additional information that the auditor may request from management for the purpose of the audit d. All the above are concerns that management need to provide c. Unrestricted access to persons within the entity from whom the auditor determines it necessary to obtain audit evidence. a. Access to all information of which management is aware that is relevant to the preparation of the financial statements such as records, documentation and other matters;
If the auditor concludes that management’s use of the going concern basis of accounting is appropriate in the circumstances but a material uncertainty exists, the auditor shall: i) Determine whether financial statements disclose clearly that there is a material uncertainty ii) Determine whether the financial statements adequately disclose the principal conditions that may cast significant doubt on the entity’s ability to continue as a going concern. iii) Determine whether the financial statements adequately disclose management’s plans to deal with these events or conditions. A. i) and ii) B. i) and iii) C. Only i) D. i) , ii) and iii)
The existence of audit risk is recognized by the statement in the auditor's standard report that the auditor _______. A. Assesses the accounting principles used and also evaluates the overall financial statement presentation. B. Is responsible for expressing an opinion on the financial statements, which are the responsibility of management. C. Obtains reasonable assurance about whether the financial statements are free of material misstatement. D. Realizes that some matters, either individually or in the aggregate, are important while other matters are not important.
all of the following are the responsibilities of the auditor except : Select one: a. adopting sound accounting policies, maintaining adequate internal control, and making fair representations in the financial statements b. making certain that all the assertions in the financial statement are correct c. report on the financial statements, and communicate as required by auditing standards, in accordance with the auditor’s findings d. obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement