Final answer:
When misstatements or deviations from controls are identified, auditors must assess their impact on financial statements, internal controls, and consider broader implications such as possible systemic issues or fraud.
Step-by-step explanation:
When misstatements or deviations from controls are found in planned procedures, consideration should always be given to the potential impact on financial statements, the implications for the effectiveness of the company's internal controls, and whether these findings could be indicative of a broader issue within the organization. Auditors or internal reviewers need to assess the severity of the findings and determine what further action is required, which may involve adjustments to financial statements, improvements to internal controls, or even a more extensive audit if it suggests a systemic problem.
Evaluating the causes of misstatements or deviations is crucial in understanding how they occurred and in preventing similar issues in the future. Additionally, auditors should consider the possibility of fraud, which could have significant implications for the audit opinion on the financial statements.