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.

Question

Quizplus · Accepted Answer

After discovering an omission in an important audit procedure, the auditor should determine if the report can still be supported in light of the omission. If the report can still be supported, the auditor should document the steps taken to correct the omission and revise the report if necessary. The auditor should also consider whether the omission affects other reports issued to the client, and take appropriate action. If the report cannot be supported in light of the omitted procedure, the auditor may need to withdraw the report, notify all parties known to be relying on the report, and contact their professional liability insurance carrier. However, withdrawing the report should only be done as a last resort because it can damage the auditor's credibility and reputation.

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