Assume You Completed Your Fieldwork on the XYZ Company Audit

question 89

Essay

Assume you completed your fieldwork on the XYZ Company audit of the December 31, 2025 financial statements on February 15, 2026.The financial statements were released on February 28, 2026.On March 16, 2026, you discovered that XYZ's largest customer filed for bankruptcy, which you believe could have caused you to change the audit report.How is your responsibility as an auditor, and the steps that should be taken, different than if you had been made aware of the subsequently discovered fact before February 28, 2026?

---

Definitions:

Narrative Leadership

A decentered model of leadership that sees stories as exhibiting a leadership function and playing a central role in shaping organizational vision.

Switchboard Operator

An individual responsible for handling telephone calls by connecting, disconnecting, and rerouting calls using a switchboard system.

Decentered Approach

A strategy that involves moving away from a centralized point of view or authority to consider multiple perspectives or distribute control.

Leadership Research

The systematic study of different leadership styles and practices to understand what makes an effective leader.