Business Ethics and Corporate Governance, Second Edition

RESPONSIBILITIES REGARDING THE MIS-STATEMENT OF FINANCIAL STATEMENTS

With regard to the responsibility of an auditor concerning mis-statements, the position is as follows: If appropriate disclosures regarding the material mis-statement affecting the prior period financial statements is not made, then the auditor should issue a modified report on the current period financials modified with respect to the corresponding figures included. Moreover, when the prior period financial statements are not audited, the incoming auditor should state in the auditor’s report that the corresponding figures are unaudited. The auditor should obtain sufficient appropriate audit evidence that the closing balances of the preceding period have been correctly brought ...