Final answer:
If facts surface after the audit report release date suggesting a need for report revisions when individuals are still relying on it, auditors must take action to ensure the continued reliability of their reports. The importance of such due diligence is highlighted by cases like Stapel's fraud..
Step-by-step explanation:
When subsequently discovered facts that would result in either the revision of the auditor's report or the financial statements are discovered after the audit report release date and individuals are continuing to rely on the statements, the auditor has a responsibility to take action. This may include enquiring of management and, where applicable, those charged with governance, whether they believe the financial statements require revision. If there are misrepresented facts, a reissuance of the audited financial report may be necessary, complete with a revised auditor's report reflecting the new findings.
This responsibility is grounded in the need for auditors to ensure the integrity of their work. The case of Stapel's fraud illustrates the importance of researchers and auditors having a robust understanding of statistics and the methods used in studies or financial reports they are associated with. In Stapel's case, a lack of familiarity with basic statistics among co-authors contributed to the perpetuation of fraud. To prevent such occurrences, auditors must also diligently monitor for any new information that could affect the reliability of their previously issued reports, especially when these reports continue to inform public opinion or business decisions.