If,after issuing an audit report,the auditors find that they have failed to perform certain significant audit procedures they should first:
A)Attempt to determine whether their report is still being relied upon by third parties.
B)Notify regulatory agencies.
C)Notify legal counsel.
D)Wait until the beginning of the next year's audit to determine whether misstatements have occurred.

Question

Quizplus · Accepted Answer

The auditors should first attempt to determine whether their report is still being relied upon by third parties. If the report is still being relied upon, the auditors should assess the potential impact of the omitted procedures and consider whether to amend the report or issue a separate communication to the third parties. The auditors should also determine the cause of the omitted procedures and take steps to prevent a recurrence in future audits. Notification of regulatory agencies and legal counsel may be necessary depending on the circumstances, but these actions should be taken after the initial assessment of the impact on the report and the third parties who have relied upon it. Waiting until the beginning of the next year's audit is not appropriate as it could allow misstatements to go undetected and potentially harm the users of the financial statements.

If,after Issuing an Audit Report,the Auditors Find That They Have