After the financials have been issued with an accompanying audit report on a nonpublic entity, there is no obligation to make any further audit tests or inquiries with respect to the audited financial statements covered by that report unless:
A)new information comes to the auditor's attention concerning an event that occurred prior to the date of the auditor's report that may have affected the auditor's report.
B)material adverse events occur after the date of the auditor's report.
C)final determination or resolution was made on matters that had resulted in a qualification in the auditor's report.
D)final determination or resolution was made of a contingency that had been disclosed in the financial statements and no liability arose from the resolution.

Question

Quizplus · Accepted Answer

According to the Generally Accepted Auditing Standards (GAAS), an auditor has no obligation to make any further audit tests or inquiries after the financials have been issued with an accompanying audit report, unless new information comes to the auditor's attention concerning an event that occurred prior to the date of the auditor's report that may have affected the auditor's report. Therefore, choice A is the best answer. Material adverse events occurring after the date of the auditor's report, the final determination or resolution made on matters that had resulted in a qualification in the auditor's report, or the final determination or resolution made of a contingency that had been disclosed in the financial statements and no liability arose from the resolution do not require further audit tests or inquiries, according to GAAS.

After the Financials Have Been Issued with an Accompanying Audit