What are subsequently discovered facts that could alter an auditor’s report?

Subsequently discovered facts are events or information that come to light after the auditor has issued their report, which have the potential to affect the conclusions drawn and the overall opinion expressed in that report. When an auditor issues an opinion on the financial statements, they are basing that opinion on the information available up to the date of their report. If new information becomes available after that date that could have a significant impact on the financial statements, it is considered a subsequently discovered fact.

This is critical in auditing because the integrity and reliability of financial reporting depend on being informed of all pertinent facts. If new information is disclosed that significantly changes the understanding of the financial statements, the auditor has an obligation to communicate those findings and possibly to revise their report or issue an updated one.

The other options do not accurately describe this concept. Known discrepancies reported at audit closing pertain to issues identified before the report was issued, future financial projections are speculative and not relevant to the accuracy of past financial statements, and unrecorded revenues in previous audits refer to issues known at the time of those audits, rather than after the report has been issued.