If the Auditor Decides That Steps Should Be Taken to Prevent

question 50

True/False

If the auditor decides that steps should be taken to prevent further reliance on the financial statements and audit report due to subsequent events after issuance of the audit report,the auditor should not try to obtain client cooperation,but should immediately notify any regulatory agency having jurisdiction over the client,such as the SEC,that the audit report should no longer be associated with the client's financial statements.

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Definitions:

Sales Tax

A tax imposed by governments on the sale of goods and services, collected at the point of sale and typically expressed as a percentage of the sale price.

Lowest Price

The minimum price at which a product or service is offered in the market.

Levied

The act of imposing or collecting a charge, tax, or fee by authority or law.

Highest Price

the maximum price at which a good or service is sold in the market or the highest price a buyer is willing to pay.