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:

Per Share

A financial metric that represents some quantity divided by the total number of outstanding shares of a company, often used in financial ratios.

First-day Returns

The percentage change in price of a stock or other security from its offering price on its first day of public trading.

SIPC

SIPC stands for the Securities Investor Protection Corporation, which is a nonprofit organization that insures investors' securities and cash in the event a brokerage firm goes bankrupt or faces financial difficulties.

Brokerage Firm

A company that acts as an intermediary between buyers and sellers of financial securities, providing investment services and advice.