After Issuance of the Auditor's Report,the Auditor Has No Obligation

question 7

Multiple Choice

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

• A) A final resolution of a contingency that had resulted in a qualification of the auditor's report is made.
• B) A development occurs that may affect the client's ability to continue as a going concern.
• C) An investigation of the auditor's practice by a peer review committee ensues.
• D) New information is discovered concerning undisclosed related party transactions of the previously audited period.

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Definitions:

Vending Machines

Automated machines that sell items such as snacks, beverages, and tickets to consumers after money, a credit card, or a specially designed card is inserted into the machine.

Free Association

A psychoanalytic technique in which a patient voices thoughts as they occur, without critical filtering, to uncover unconscious processes.

Repressed Memory Recovery

The process of recalling memories that have been unconsciously blocked due to being associated with a high level of stress or trauma.

Reaction Formation

In psychoanalytic theory, the defense mechanism that keeps an anxiety-producing impulse or thought in check by producing its opposite.