American Fuel & Supply Company

American Fuel & Supply Company Inc. 1. A major focus of the lawsuit Chevron Chemical filed against Touche Ross was the auditing traffics rules regarding the subsequent discovery of facts animate at the accompaniment of the attendees taradiddle. Those rules distinguish between situations in which a client cooperates with the auditor in making only necessary disclosures and situations involving uncooperative clients. Briefly summarize the differing responsibilities that auditors have in those two sets of circumstances. Answer: International Standard of Auditing (ISA) Section 560 ensuant Events paragraph 15 defined that Subsequent discovery of facts existing at the period of the auditors report is where the develop when after the financial statements have been issued, the auditor becomes aw are of a fact which existed at the date of the auditors report and which if known at that date, may have caused the auditor to shift the auditors report, the auditor should consider whether the financial statements strike revision, should discuss the matter with management, and should take the action appropriate in the circumstances. The subsequent discovery of facts requiring the recall or re-issuance of financial statements does non arise from business events occurring after the date of auditors report.

While a number of situations may apply, the most park situation is where the previously financial statements contain material misstatements overdue to either unintentional or intentional actions by management. When facts are encountered that may affect the auditors previously issued report, the auditor should consult with his/her attorney because legal implications may be come to and actions taken by the auditor may involve unavowed client-auditor communications. The auditor should determine whether the facts are reliable and whether they existed at the date of the audit report. The auditor should discuss the matter with an appropriate aim of management and request... If you want to get a full essay, fiat it on our website: Ordercustompaper.com

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