Which of the following factors should an auditor consider most important upon su

Question

Which of the following factors should an auditor consider most important upon subsequent discovery of facts that existed at the date of the audit report and would have affected the report? A. The cost-to-benefit ratio of performing additional procedures to better determine the impact of the newly discovered facts. B. The client’s willingness to issue revised financial statements or other disclosures to persons known to be relying on the financial statement. C. The potential impact on financial statements and associated audit reports for the previous 5 years. D. The client’s willingness to pay additional fees for the additional procedures to be performed.

Explanation / Answer

answer is option B.

B. The client’s willingness to issue revised financial statements or other disclosures to persons known to be relying on the financial statement.  

The subsequent discovery of facts that existed at the date of the audit report will be meaningful for stakeholders if the client that is company is ready to issue revised financial statements or other disclosures to persons known to be relying on the financial statement.  

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