Auditing · Audit Reports
If an uncorrected material misstatement resulting from fraud is identified during an audit, how is this communicated to shareholders?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Through the independent auditor's report by issuing a modified audit opinion✓
- 2The auditor reports it to law enforcement agencies, who notify the shareholders
- 3The auditor addresses shareholders at the Annual General Meeting specifically on the matter
- 4The auditor sends an individual letter to each shareholder informing them of the fraud
Correct answer
Through the independent auditor's report by issuing a modified audit opinion
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