Considerations Specific to Public SectorConsiderations Specific to Public Sector Entities

Considerations Specific to Public Sector Entities

1. In the public sector, the actions taken in accordance with paragraph 13 when management does not amend the financial report may also include reporting separately to the legislature, or other relevant body in the reporting hierarchy, on the implications of the subsequent event for the financial report and the auditor’s report.

Auditor Action to Seek to Prevent Reliance on Auditor’s Report (Ref: Para. 13(b))

1. The auditor may need to fulfil additional legal obligations even when the auditor has notified management not to issue the financial report and management has agreed to this request.
2. Where management has issued the financial report despite the auditor’s notification not to issue the financial report to third parties, the auditor’s course of action to prevent reliance on the auditor’s report on the financial report depends upon the auditor’s legal rights and obligations. Consequently, the auditor may consider it appropriate to seek legal advice.