By the Time the Interim Work Has Been Completed the Auditor

Multiple Choice

By the time the interim work has been completed the auditor should have a good understanding of the client and problems that management is likely to encounter preparing the financial statements. What should the auditor do if, as they prepare for the final work, they discover a significant unanticipated problem area?

A) Amend the audit plan and advise management about impacts on disclosure and accounting.
B) Follow the audit plan that has been agreed and include an appropriate qualification in the audit report.
C) Resign as auditor as the risk is too great that other problems will arise.
D) Notify the appropriate regulator that there is a problem with the financial statements.