Page 155 - Microsoft Word - 00 P1 IW Prelims.docx

Completion

After the auditor's report has been signed

 The auditor is under no obligation to perform audit procedures after the auditor's
report has been issued, however, if they become aware of a fact which would
cause them to issue a modified report, they must take action.

 The auditor should discuss the matter with management and consider if the
financial statements require amendment.

 Request management to make the necessary amendments.

 Perform audit procedures on those amendments.

 Issue a new auditor's report.

 If management do not amend the financial statements and the auditor's report
has not yet been issued to the client, the auditor can still modify the opinion.

 If the auditor's report has been provided to the client, the auditor shall notify
management and those charged with governance not to issue the financial
statements before the amendments are made.

 If the client issues the financial statements despite being requested not to by
the auditor, the auditor shall take action to prevent reliance on the auditor’s
report.

After the financial statements are issued

 If the directors recall the financial statements and make amendments, the
auditor should perform audit procedures on the amendments to ensure they
have been put through correctly.

 The auditor will issue a new auditor's report including an emphasis of matter
paragraph to draw attention to the fact that the financial statements and
auditor's report have been reissued.

151