After an Audit Report Is Issued,the Auditor Discovers Through a Peer

question 97

Multiple Choice

After an audit report is issued,the auditor discovers through a peer review that an important audit procedure has been omitted.The auditor should do which of the following?

• A)notify all parties known to be relying on the report.
• B)immediately request the client recall the report.
• C)contact his or her professional liability insurance carrier.
• D)determine whether the report can still be supported in light of the omitted procedure.

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Definitions:

Net Present Value

The difference between the present value of cash inflows and outflows over a period, used to assess the profitability of an investment.

Preferred Method

A recommended or favored way of doing something, often based on its effectiveness or efficiency.

Cash Flows

The entire amount of currency transactions flowing into and out of a venture, essentially affecting its cash flow status.

Payback Calculation

A financial analysis method used to determine the time required to recoup the cost of an investment, based on the cash inflows from the investment.