Читать книгу Wiley Practitioner's Guide to GAAS 2020 - Joanne M. Flood - Страница 117

Any Fraud Involving Senior Management for SEC Clients

Auditor should:

1 Follow the steps in the Situation 1 checklist plus additional items 2–4 below.

2 Consider Section 10A(b) of the Securities Exchange Act of 1934 (Title III, Private Securities Litigation Reform Act of 1995):Matter is reported to board of directors and it does not take appropriate action.Auditor concludes that failure to take remedial action is expected to cause departure from standard audit report or cause withdrawal.Auditor should report conclusion in item b of this list to board of directors as soon as practicable (e.g., on Monday).Client is required to notify SEC (within one business day) of auditor’s conclusion described in item b (e.g., by Tuesday).Client is required to furnish report to SEC in item d to auditor within one business day (e.g., by Tuesday).If auditor doesn’t receive report in item e, auditor notifies SEC within one business day following failure to receive (e.g., on Wednesday).

3 If the auditor withdraws or resigns from the engagement, the auditor must send a copy of the resignation to the SEC within five business days.

4 Follow SEC requirements for reporting on Form 8-K:Upon auditor’s withdrawal, client must disclose within four business days the following information on a Form 8-K, filed with the SEC, with a copy to the auditor on the same day:Auditor’s resignationAuditor’s conclusion that the information coming to his or her attention has a material impact on the fairness or reliability of the client’s financial statements or audit report and that this matter was not resolved to the auditor’s satisfaction before resignationAuditor must prepare a letter stating agreement or disagreement with client’s statements after reading Form 8-K. If auditor disagrees, he or she must disclose differences of opinion in a letter to client as promptly as possible. Client must then file the letter with the SEC within ten business days after filing the Form 8-K. Notwithstanding the ten-business-day requirement, client has two business days from the date of receipt to file the letter with the SEC.