| 10. | The auditor has no obligation to perform any audit procedures regarding the financial statements after the date of the auditor's report. However, if, after the date of the auditor's report but before the date the financial statements are issued, a fact becomes known to the auditor that, had it been known to the auditor at the date of the auditor's report, may have caused the auditor to amend the auditor's report, the auditor shall: (Ref: Para. A11) |
| (a) | Discuss the matter with management and, where appropriate, those charged with governance. |
| (b) | Determine whether the financial statements need amendment and, if so, |
| (c) | Inquire how management intends to address the matter in the financial statements. |
| 11. | If management3a amends the financial statements, the auditor shall: |
| (a) | Carry out the audit procedures necessary in the circumstances on the amendment. |
| (b) | Unless the circumstances in paragraph 12 apply: |
| (i) | Extend the audit procedures referred to in paragraphs 6 and 7 to the date of the new auditor's report; and |
| (ii) | Provide a new auditor's report on the amended financial statements. The new auditor's report shall not be dated earlier than the date of approval of the amended financial statements. |
| 12. | Where law, regulation or the financial reporting framework does not prohibit management3a from restricting the amendment of the financial statements to the effects of the subsequent event or events causing that amendment and those responsible for approving the financial statements are not prohibited from restricting their approval to that amendment, the auditor is permitted to restrict the audit procedures on subsequent events required in paragraph 11(b)(i) to that amendment. In such cases, the auditor shall either: |
| (a) | Amend the auditor's report to include an additional date restricted to that amendment that thereby indicates that the auditor's procedures on subsequent events are restricted solely to the amendment of the financial statements described in the relevant note to the financial statements; or (Ref: Para. A12) |
| (b) | Provide a new or amended auditor's report that includes a statement in an Emphasis of Matter paragraph4 or Other Matter paragraph that conveys that the auditor's procedures on subsequent events are restricted solely to the amendment of the financial statements as described in the relevant note to the financial statements. |
| 13. | In some jurisdictions, management3a may not be required by law, regulation or the financial reporting framework to issue amended financial statements and, accordingly, the auditor need not provide an amended or new auditor's report. However, if management does not amend the financial statements in circumstances where the auditor believes they need to be amended, then: (Ref: Para. A13-A14) |
| (a) | If the auditor's report has not yet been provided to the entity, the auditor shall modify the opinion as required by ISA (UK and Ireland) 7055 and then provide the auditor's report; or |
| (b) | If the auditor's report has already been provided to the entity, the auditor shall notify management and, unless all of those charged with governance are involved in managing the entity, those charged with governance, not to issue the financial statements to third parties before the necessary amendments have been made. If the financial statements are nevertheless subsequently issued without the necessary amendments, the auditor shall take appropriate action, to seek to prevent reliance on the auditor's report. (Ref. Para: A15-A16) |
| 3a In the UK and Ireland the responsibility for amending the financial statements rests with those charged with governance. |
| 4 See ISA (UK and Ireland) 706, "Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor's Report." |
| 5 ISA (UK and Ireland) 705, "Modifications to the Opinion in the Independent Auditor's Report." |
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