ISA 560 (3)

Question 1

What happens after auditor’s report signed?

Answer 1

Auditor becomes aware of a material subsequent event

Question 2

Auditor’s report signed characteristics (management FS)

Answer 2

Discuss matter with management to determine whether FS need amendment

Question 3

Auditor’s report signed characteristics (FS procedures adjustment unmodified)

Answer 3

If management amends FS auditor should extend audit procedures to items that require adjustment or disclosure and issue a new, unmodified auditor’s report

Question 4

If management refuses to make amendment in FS then auditor shoud either (if not yet released auditor’s report)

Answer 4

Reissue a report with a modified opinion

Question 5

If management refuses to make amendment in FS then auditor shoud either (if have released auditor’s report)

Answer 5

Seek legal advice

Question 6

What happens after FS is issued?

Answer 6

Auditor becomes aware of a material subsequent event

Question 7

FS issued characteristics (Management)

Answer 7

Discuss matter with management

Question 8

FS issued characteristics (Auditor’s report other matter)

Answer 8

If management amends FS auditor should issue a new auditor’s report including an emphasis of matter or other matter paragraph to explain revision to previously issued FS

Question 9

FS issued characteristics (Management amendment)

Answer 9

If management refuses to make amendment in FS then auditor should seek legal advice