Auditing and Attestation - Certified Public Accountant (CPA) Practice Exam 2026 - Free CPA Practice Questions and Study Guide

When an auditor discovers relevant facts that existed at the report date, the next step is to assess whether these facts affect the financial statements significantly. This assessment is crucial because it helps determine if the new information alters the auditor's conclusions about the fairness of the financial statements in accordance with the applicable financial reporting framework.

Significant changes in facts can influence the valuation of assets, liabilities, revenue recognition, or the overall presentation of the financial statements. Therefore, understanding the significance of these facts is essential for the auditor to properly address any necessary disclosures or modifications to the financial statements before they are finalized and issued.

Considering the role of stakeholders, while it is important to recognize who may rely on the financial statements, this is secondary to determining the impact of the new facts on the statements themselves. The need for any revisions or the potential necessity of a follow-up audit hinges on the significance of the information discovered, making this assessment a critical part of the auditor's responsibilities after discovering new relevant facts.