Incase misstatement comes in knowledge of auditor after submission of audit report and conduct of GM, how shall he rectify/ change his opinion
a) if previous audit has been performed by him? Will he be held guilty under section 147 and section 447? Will an inquiry be initiated against him by the tribunal under section 140(5)?
b) if previous audit was performed by some other auditor? Should he accept the audit or not?
Sir, kindly please explain…
Sir, if such misstatement relates to financial statement, will SA 560 also apply? but if such misstatement relates to other information, then sa 720 shall apply. is it correct?
PREVIOUS AUDIT DONE BY SAME AUDITOR
— If misstatement is detected after audit then we have to see, did auditor perform audit properly as per law and SAs
If followed law and SAs and did audit carefully then he is not responsible
If was negligent then he will be held responsible and get punished
— In any case whenever such information is received auditor should ask for FST revision and give new audit report as per SA 560 if its related to FST
PREVIOUS AUDIT DONE BY SOME OTHER AUDITOR
Again ask for rectification and give report accordingly
Previous auditor should apply SA 560 on PY FST and AR
If misstatement is observed in Other Info after issuing report then SA 720 Revised will be applicable