Following the Audit Report Release Date, Auditors Became Aware of Facts

question 30

Multiple Choice

Following the audit report release date, auditors became aware of facts existing at the report date that would have affected the reports had auditors then been aware of such facts. What is the most appropriate initial course of action that auditors should take?

• A)Determine whether there are persons relying or likely to rely on the financial statements who would attach importance to the information.
• B)Request that management disclose the newly-discovered information by issuing revised financial statements.
• C)Issue revised pro forma financial statements taking into consideration the newly discovered information.
• D)Give public notice that auditors are no longer associated with financial statements.

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Definitions:

Organizational Culture

The group of collective beliefs, values, and norms guiding employees' thoughts, feelings, and actions in a company.

Disney University

A corporate training program by Disney, focusing on customer service, leadership, and company culture.

Formal Training

Structured educational programs designed to enhance the knowledge or skills of employees.

Cultural Value Statements

Declarations that communicate the core principles and ethical standards that guide the behavior, decisions, and actions of an organization or community.