After issuance of the financial statements and the accompanying auditor's report, the auditor has no obligation to make any further inquiries with respect to audited financial statements covered by an auditor's report unless:
A)a lawsuit in which risk of loss was considered remote is resolved in the company's favor.
B)a development occurs that may affect the entity's ability to continue as a going concern.
C)a material fraud is initiated by an employee after the report is issued.
D)evidence of significant, non-arms-length, related party transactions that happened prior to year-end is discovered.

Question

Quizplus · Accepted Answer

The Answer of After issuance of the financial statements and the accompanying auditor's report, the auditor has no obligation to make any further inquiries with respect to audited financial statements covered by an auditor's report unless:
A)a lawsuit in which risk of loss was considered remote is resolved in the company's favor.
B)a development occurs that may affect the entity's ability to continue as a going concern.
C)a material fraud is initiated by an employee after the report is issued.
D)evidence of significant, non-arms-length, related party transactions that happened prior to year-end is discovered.

After Issuance of the Financial Statements and the Accompanying Auditor's