What is Subsequently discovered facts?
In short
Subsequently discovered facts are facts that become known to the auditor after the report date that, had they been known then, might have caused the auditor to revise the report.
Key takeaways
- The auditor discusses them with management and decides whether the financial statements need revising.
- If the statements are revised, the auditor issues a new or updated report.
- If management won't act and users may be relying on the statements, the auditor takes steps to prevent that reliance.
Where it's tested
AUD: Written Representations & Completing the Audit — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Management refuses to sign the written representation letter at the conclusion of the audit. What is the appropriate response?