Page 58 of 86
.A73 Because of the variety of conditions that might be encountered, the specific procedures or
actions to be taken in a particular case may vary somewhat in light of the circumstances.
For example, when determining whether the financial statements need revision, as required
by paragraph .51b, the accountant may consider, in addition to the requirements of the
applicable financial reporting framework, whether the accountant believes persons are
currently using, or are likely to use, the financial statements and who would attach
importance to the subsequently discovered facts. Consideration may be given, among other
things, to the issuance of reviewed or audited financial statements for a subsequent period,
the time elapsed since the financial statements were issued, the date of the accountant’s
review report released, and any legal implications.
.A74 The steps taken by management to ensure that anyone in receipt of the reviewed financial
statements is informed of the situation, including that the reviewed financial statements are
not to be used, depend on the circumstances. Management’s steps may include the
following:
• Notify anyone who is known to be using, or who is likely to use, the financial
statements and the accountant’s review report that they are not to be used and that
revised financial statements, together with a new accountant’s review report, will be
issued. This may be necessary when the issuance of revised financial statements and
a new accountant’s review report is not imminent.
• Issue, as soon as practicable, revised financial statements with appropriate
disclosure of the matter.
• Issue the subsequent period’s financial statements with appropriate disclosure of
the matter. This may be appropriate when issuance of the subsequent period’s
reviewed or audited financial statements is imminent.
.A75 If management made the reviewed financial statements available to third parties despite
the accountant’s notification not to do so, or if the accountant believes that management
or those charged with governance have failed to take the necessary steps to prevent use of
the accountant’s review report on the previously issued reviewed financial statements
despite the accountant’s prior notification that the accountant will take action to seek to
prevent such use, the accountant’s course of action depends on the accountant’s legal and
ethical rights and obligations. Consequently, the accountant may consider it appropriate to
seek legal advice.
.A76 The actions that the accountant may take to seek to prevent use of the accountant’s review
report may depend on the degree of certainty of the accountant’s knowledge that persons
or entities exist who are currently using, or who will use, the reviewed financial statements,
and who would attach importance to the information, and on the accountant’s ability as a
practical matter to communicate with them. In addition to seeking legal advice, the
accountant may consider taking the following steps to the extent applicable:
• Notify management and those charged with governance that the accountant’s
review report is not to be used.
• Notify regulatory agencies having jurisdiction over the entity that the accountant’s
review report is not to be used, including a request that the agency take whatever
steps it may deem appropriate to accomplish the necessary disclosure.