Which of the Following Statements Is Not True Regarding the Auditor's

question 854

Multiple Choice

Which of the following statements is not true regarding the auditor's responsibility for subsequent events?

• A) The auditor has an active responsibility to make continuing inquiries between the date of the auditor's report and the date on which the report is submitted.
• B) The auditor has an active responsibility to make continuing inquiries between the date of the financial statements and the date of the auditor's report.
• C) The auditor has an active responsibility to make continuing inquiries between the date of the financial statements and the date on which sufficient appropriate audit evidence has been obtained.
• D) The auditor has no active responsibility to make continuing inquiries after the date of the auditor's report.

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Definitions:

Right to Sue

The legal authority granted to an individual or entity to bring a lawsuit against another party.

Neutral Third Party

An unbiased individual or group engaged to mediate or arbitrate between conflicting parties.

Mediation

A form of alternative dispute resolution where a neutral third party, the mediator, helps disputing parties find a mutually satisfactory solution.

Dispute

A disagreement or argument about something important.