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Under present technical standards, would auditors be required to disclose a company policy similar to Nay's mail rule that they discover during an audit? Explain. Assuming such disclosure had been required at the time this case took place, would that disclosure have resulted in the mail rule being discontinued?
Under present technical standards, auditors are required to disclose company policy similar to Nay's mail rule, and it's important for auditor to be aware and further investigate unreasonable or doubtful company policy if it leads to internal control weakness or possibly fraud scheme. They are also required to report their assessment of internal controls and their opinion on management's assessment of internal control over financial reporting...
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