Which of the following statements is true when an omitted audit procedures is discovered after the...

Which of the following statements is true when an omitted audit procedures is discovered after the audit report was issued? a. After the audit report has been issued, the auditor may discover that an important audit procedure was not performed. b. Such an omission may be discovered when audit documentation is reviewed as part of an external or internal review program. c. The auditor should decide whether the previously issued audit report can still be supported in light of the omitted procedures. d. All of the above.

Solutions

Expert Solution

Option (d) is correct.

All of the above.

After the report has been issued, the auditor discovers an ommitted procedure,which should have been performed,and which is an important audit procedure that was subject to ommission. Such an ommission may be discovered when audit documentation is reviewed as part of an external or internal review program. Auditor should assess the importance of the ommitted procedure to his present ability to support his previuosly expressed opinion regarding the financial statements.Or in other words,auditor should decide, if there is no significant impact of the ommitted procedure and the previuosly issued report is good enough. If this is not the case and there are persons relying on the previously issued report then,the auditor should immediately apply those ommitted procedure or other alternate / substitute procedures that would provide satisfactory basis for his opinion.and start documenting them.

ekkarill92 answered 1 year ago

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