What action should an auditor take if a client refuses to follow procedures after a report has been released?

In situations where a client refuses to follow procedures after a report has been released, one appropriate action an auditor might consider is to document the refusal and escalate the issue. This response is significant because it emphasizes the importance of maintaining professional standards and ethical responsibilities.

When a client fails to implement recommended procedures, it could expose the auditor to risk if the situation results in financial misstatements or compliance issues. By documenting the refusal, the auditor creates a record that may be important for future reference, whether for potential legal actions, regulatory inquiries, or professional liability considerations.

Escalating the issue, whether it be to higher management within the client organization or to the audit firm's leadership, ensures that there is awareness of the client's non-compliance and allows for appropriate strategies to be developed to address the situation. This can also protect the auditor's reputation and safeguard their ethical responsibilities in ensuring clients adhere to recommended procedures.

Therefore, the action of documenting the refusal and escalating the issue reflects the auditor's commitment to due diligence and professional integrity, aligning with the best practices in audit management.