The Audit Report Was Already Released. Then the Auditor Finds a Major Fact.
A material fact found after release can create new responsibilities even though the original audit is finished.
First question
Would the information have affected the audit report if the auditor had known it at the report date? If not, further action may not be required.
If the fact matters
The auditor discusses the matter with management and governance and determines whether the statements require revision or users need notification.
Revised statements
When statements are revised, the auditor performs procedures appropriate to the revision and subsequent-event period.
Management refuses
If management refuses necessary action, the auditor may need steps designed to prevent future reliance on the audit report.
The takeaway
Ask whether the fact would have affected the report at the original report date, then determine whether statements or users need corrective action.
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FAQ
Does every new fact require revised statements?
No.
Is this the same as dual dating before release?
No.
Can management refusal create serious consequences?
Yes.