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Facts which become known to the auditor

Either After the date of the auditors report but before the date the financial statements are issued Or After the financial statements have been issued If auditor believes that such events or facts require FS to be amended, and management refuses to co-operate and not only that, auditor believes that such events or facts would have caused him to amend his report. Since Auditor's report have already been submitted with the company, now what will the auditor do? since he cant amend his report anymore. In the ICAI material it ends simply by writing "inquire how management intense to address the matter in the financial statements". Thats it. But then what? What if management does not bother about it since they have received Auditor's report already? And say in worst case scenario, FS have been already been issued at the AGM where auditor was also present but at that point of time did not have that information. Later came to know about it.


Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

02-Dec-20 11:15

12

Answers (4)

Best Answer

If management does not take the necessary steps to ensure that anyone in receipt of the previously issued financial statements is informed of the situation and does not amend the financial statements in circumstances where the auditor believes they need to be amended, the auditor shall notify management and, those charged with governance, that the auditor will seek to prevent future reliance on the auditorâ??s report. If, despite such notification, management or those charged with governance do not take these necessary steps, the auditor shall take appropriate action to seek to prevent reliance on the auditorâ??s report.


Suraj Lakhotia

Suraj Lakhotia

Admin

02-Dec-20 14:54

I like to get to the bottom of things :)


Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

02-Dec-20 11:18