After an Auditor Has Issued an Auditor's Report on the Financial

question 5

Multiple Choice

After an auditor has issued an auditor's report on the financial report of an entity, there is no obligation to make any further audit tests or inquiries with respect to the audited financial report 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 modification of the auditor's report
• D) final determination or resolution was made of a contingency that had been disclosed in the financial report.

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Definitions:

Explanatory Variables

Variables in a statistical model that are used to explain variation in the response variable, also known as independent variables.

Indicator Variable

A variable used in statistical models that takes the value 1 if a specific condition is true and 0 if it is false, often used to represent categorical data in numerical form.

Logistic Regression

A statistical method for analyzing datasets in which there are one or more independent variables that determine an outcome, which is dichotomous.

Multiple Logistic Regression

A statistical technique that models the probability of a certain outcome or event based on more than one independent variable.