Master ACCA F8 Audit & Assurance 2025 – Ace It with Confidence and Style!

The correct answer is that the auditor must discuss with management to determine if the financial statements need amending after the Auditor's Report is signed. This is vital because subsequent events can significantly impact the financial statements and may need to be reflected if they provide additional information relevant to the financial position or performance of the entity.

Once the auditor's report is signed, it is essential to assess whether any events that occurred after the reporting period but before the financial statements are issued require changes. This discussion with management allows for a thorough evaluation of the subsequent events and ensures that all relevant information is considered. If it is determined that these events lead to material adjustments, the financial statements must be amended to provide a true and fair view.

Moreover, taking action without proper discussion and analysis, such as informing stakeholders immediately or ignoring further checks, could lead to misinformation being communicated or the omission of crucial details, which is detrimental to stakeholder trust and clarity in financial reporting. Therefore, assessing whether financial statements need amending is a responsible, systematic approach to ensuring that financial reporting remains accurate and reliable.