If an auditor discovers that previously issued financial statements are misleading, the most desirable approach to follow is to request that the client issue an immediate revision of the financial statements containing an explanation of the reasons for the revision.

Question

Quizplus · Accepted Answer

Requesting immediate revision and explanation of the reasons for the revision is considered the most desirable approach in such a scenario. It helps to correct the misleading information and provide transparency to the users of the financial statements.

If an Auditor Discovers That Previously Issued Financial Statements Are