Audit and Assurance Practice Exam 2025 – Complete Prep Resource

When an auditor discovers that a significant audit procedure has been omitted, the appropriate course of action is to communicate the findings to the appropriate parties. This step is crucial because it ensures transparency regarding the audit process and helps maintain the integrity of the audit. By informing relevant stakeholders—such as management and those charged with governance—the auditor provides an opportunity to assess the potential impact of the omitted procedure on the overall audit opinion.

Communicating the findings allows for further evaluation of whether the omission materially affects the financial statements. It also helps in determining whether additional procedures should be performed to mitigate any potential risks or issues arising from missed audit steps. This communication is essential for maintaining professional standards and fostering trust between the auditor and the entities involved.

The emphasis here is on accountability and ensuring that all parties are aware of the situation so that they can take appropriate actions, which may include performing additional audit procedures to address any shortcomings.