The Audit Firm Issues an Audit Report for Its Client

question 67

Multiple Choice

The audit firm issues an audit report for its client.The auditor's have NO obligation to make further inquiries with respect to the client's audited financial statements unless:

• A)a development occurs that may affect the company's long term viability as a company.
• B)final resolution was made on disclosed contingency for which no liability needed to be accrued.
• C)new information comes to the auditor's attention concerning an event that occurred prior to the date of the audit report that, if known, would have impacted the audit opinion.
• D)a lawsuit, in which the risk of loss was considered remote, was resolved in the company's favor.

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Definitions:

Good Listener

A person who pays attentive and empathetic attention to someone speaking, demonstrating understanding and interest.

Personality Hazards

Behavioral or personality traits that may increase the risk of harm or loss, often considered in assessing insurance risks.

Advice

Guidance or recommendations provided to help someone make decisions or solve problems.

Legal

Pertaining to or concerned with the law.