When a contingency is resolved immediately subsequent to the issuance of a report that was modified with respect to the contingency, the auditor should:
A)inform the audit committee that the report cannot be relied upon.
B)insist that the client issue a revised financial report.
C)inform the appropriate authorities that the report cannot be relied upon.
D)take no action regarding the event.

Question

Quizplus · Accepted Answer

When a contingency is resolved immediately after the issuance of a report that was modified with respect to the contingency, the auditor is not required to take any action regarding the event. The audit report reflects the auditor's opinion based on the information available at the time of the audit.

When a Contingency Is Resolved Immediately Subsequent to the Issuance