oh, I just extracted the answer from BPP kit (52 Boston), you can also check the past paper Mar/Jun 16.
Extract from the answer
Financial statements not yet issued
If the financial statements have not yet been issued, then the auditor has no active duty to
perform procedures (or make enquiries) during this period. Facts have come to light, however, that suggest that the financial statements should be amended. In this case, the auditor should enquire how management intends to address the errors in the financial statements that are issued. The auditor should assess the materiality of the misstatements, and should consider whether further audit procedures need to be performed as a result of discovering the misstatements. If the financial statements are amended, then the auditor should perform extended procedures on the amendments, and issue a new auditor’s report on the amended financial statements.
Financial statements have been issued
Although the auditor has no active duty to perform procedures during this period, something has been discovered and the auditor should discuss with management how the misstatements are going to be addressed. If management then amends the financial statements, then a revised auditor’s report should be issued including an Emphasis of Matter paragraph discussing the amendment. If management does not amend the financial statements but the auditor thinks that they should, then the auditor needs to take legal advice in the relevant national jurisdiction to prevent reliance on the auditor’s opinion.
