After issuing a report, an auditor has no obligation to make continuing inquiries or perform other procedures concerning audited financial statements, unlessSelect one:a.The control environment changes after issuance of the report.b.Information, which existed at the report date and may affect the report, comes to the auditor's attention.c.Final determinations or resolutions are made of contingencies that had been disclosed in the financial statementsd.Information about an event that occurred after the end of field work comes to the auditor's attention.
Question
After issuing a report, an auditor has no obligation to make continuing inquiries or perform other procedures concerning audited financial statements, unlessSelect one:a.The control environment changes after issuance of the report.b.Information, which existed at the report date and may affect the report, comes to the auditor's attention.c.Final determinations or resolutions are made of contingencies that had been disclosed in the financial statementsd.Information about an event that occurred after the end of field work comes to the auditor's attention.
Solution
The correct answer is b. Information, which existed at the report date and may affect the report, comes to the auditor's attention.
This is because, once the auditor's report has been issued, the auditor's responsibility for the financial statements is generally considered to be finished. However, if the auditor becomes aware of information that existed at the report date and may affect the report, they have a responsibility to investigate this information and, if necessary, revise their report. This is in accordance with the auditing standards which require auditors to consider adjusting their reports if they become aware of subsequent events that would have affected their report had they been
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