After Issuance of the Financial Statements and the Accompanying Auditor's

question 71

Multiple Choice

After issuance of the financial statements and the accompanying auditor's report, the auditor has no obligation to make any further inquiries with respect to audited financial statements covered by an auditor's report unless:

• A)a lawsuit in which risk of loss was considered remote is resolved in the company's favor.
• B)a development occurs that may affect the entity's ability to continue as a going concern.
• C)a material fraud is initiated by an employee after the report is issued.
• D)evidence of significant, non-arms-length, related party transactions that happened prior to year-end is discovered.

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Definitions:

Italy

A country in Southern Europe, known for its rich history, artistic heritage, and significant contributions to culture, science, and food.

Enlightenment

An intellectual and philosophical movement that dominated the world of ideas in Europe during the 17th and 18th centuries, emphasizing reason, individualism, and skepticism of traditional doctrines.

Voltaire

Voltaire was the pen name of François-Marie Arouet (1694-1778), a French Enlightenment writer, historian, and philosopher known for his advocacy of freedom of speech, separation of church and state, and civil liberties.

France

A country in Western Europe known for its rich history, culture, and contributions to art, philosophy, and science.