If the Auditor Amends the Financial Statements Due to Subsequent

question 43

Essay

If the auditor amends the financial statements due to subsequent events what further actions are necessary?
What are the auditor's options if management refuses to amend the financial statements, where the auditor believes they should be amended, when?
1. the auditor has not released the report to the entity.
2. the auditor has released the report to the entity.

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Definitions:

Positive Event

An occurrence or situation that leads to beneficial or favorable outcomes for an individual or group.

Primary Reinforcer

A naturally reinforcing stimulus, such as food or pain relief, that does not require learning to become effective.

Aversive Event

An unpleasant or undesirable occurrence that can lead to negative reactions or behaviors, often used in the context of learning and behavior modification.

Secondary Reinforcers

Stimuli that become reinforcing through their association with primary reinforcers, such as praise, which is not innately reinforcing but becomes so through association with positive experiences.