NoraU, I think first he has to see if alternative procedure would do the trick, If the auditor cannot apply alternative procedures, he must advise the client to prevent future reliance on the report by communicating to its creditors that the report cannot be relied upon.
When the omission of a procedure impairs the auditor's ability to support the previously expressed opinion, the first step is for the auditor to apply the omitted procedure.
If the client refuses to make the necessary disclosures, the next step would be for the auditor to contact the board of directors and notify each member of the board that he will (1) notify the client that the auditor's report can no longer be associated with the financial statements, (2) notify any regulatory agencies with jurisdiction that the auditor's report cannot be relied upon, and (3) directly notify each person known to the auditor to be relying on the financial statements that they cannot be relied upon (contacting the SEC and the stock exchanges, if necessary).
The auditor's report would not be reissued with an emphasis-of-matter or other-matter paragraph.
Through God all things can happen!
“You never fail until you stop trying.”
― Albert Einstein
When I was young, I used to admire intelligent people;as I grow older, I admire kind people.
“Just keep swimming, just keep swimming.”
FAR= 72-84
Audit= 73-82
BEC= 74-75
Reg=77