After the Financials Have Been Issued with an Accompanying Audit

question 39

Multiple Choice

After the financials have been issued with an accompanying audit report on a nonpublic entity, there is no obligation to make any further audit tests or inquiries with respect to the audited financial statements covered by that report unless:

• A)new information comes to the auditor's attention concerning an event that occurred prior to the date of the auditor's report that may have affected the auditor's report.
• B)material adverse events occur after the date of the auditor's report.
• C)final determination or resolution was made on matters that had resulted in a qualification in the auditor's report.
• D)final determination or resolution was made of a contingency that had been disclosed in the financial statements and no liability arose from the resolution.

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Definitions:

Initial Cash Outlay

The initial sum of money required to start an investment or project, often including costs such as purchase price, setup fees, and licensing.

Scenario Analysis

A method of examining potential future scenarios by evaluating different possible results.

Sales Quantity

The total number of units of a product sold in a particular period of time.

Costs Per Unit

The total expense incurred to produce, store, and sell one unit of a product, including direct and indirect costs.