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MMLU / Subsequent to issuing a report on audited financial statements, a CPA discovers…

Problem

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question

Subsequent to issuing a report on audited financial statements, a CPA discovers that the accounts receivable confirmation process omitted a number of accounts that are material, in the aggregate. Which of the following actions should the CPA take immediately?

choices

  1. Bring the matter to the attention of the board of directors or audit committee.
  2. Withdraw the auditor’s report from those persons currently relying on it.
  3. Perform alternative procedures to verify account balances.
  4. Discuss the potential financial statement adjustments with client management.

subject

professional_accounting

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