Explain the proper steps auditors should take if it is discovered, after the report date, that an important substantive procedure was omitted. Also, explain the way an auditors’ decision is affected if, after review of the audit documentation, they determine that other substantive procedures produced the sufficient appropriate audit evidence. Also, explain if in subsequently applying the omitted procedure, auditors become aware of material new information that should have been disclosed in the financial statements, and the way it should be proceed.

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Chapter 11, Problem 69EP

a.

To determine

Explain the proper steps auditors should take if it is discovered, after the report date, that an important substantive procedure was omitted. Also, explain the way an auditors’ decision is affected if, after review of the audit documentation, they determine that other substantive procedures produced the sufficient appropriate audit evidence. Also, explain if in subsequently applying the omitted procedure, auditors become aware of material new information that should have been disclosed in the financial statements, and the way it should be proceed.

b.

To determine

Explain the proper action to take in the two cases.

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