Chap 10 Auditors Responsibility

Question 1

What is A’s Responsibility - between date of FS & date of A Report

Answer 1

1. Perform PROCEDURES to identify events ( that might req adjm/ disclosure in FS)
   2) ASK Managm AMEND FS if material adj events not adjusted for/ material non-adj events not disclosed
   3) if not done consider impact on A Report- whether modification opinion necessary

Question 2

What is Auditors duty

- between date AReport & date FS are issued

Answer 2

(No obligation to perform procedures)

If become aware fact which would cause amend AReport:
- ask client AMEND fs, audit amendment, re issue AReport

If m don’t amend & AReport not issued yet- modify opinion

If AReport has been provided to client - notify m & charg gov not to issue FS b4 amendments made
If issue fs despite being asked not to- take action to prevent reliance on report

Question 3

Auditors duty

After Fs are issued

Answer 3

No oblig procedures

If become aware fact that’d cause amend A report:

• discuss matter with management &consider if FS req amendment
• perform procedures on amendments ( to ensure put through correctly)
• review steps taken by m to ensure anyone in receipt of previous issued fs is INFORMED
• issue new AREport with emphasis of matter /other matter paragraph to draw attention to fact a report been re issued

If m refuse to recall & reissue FS - take action to prevent reliance on