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

question 18

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 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:

Validity

The extent to which a test or instrument accurately measures what it is intended to measure.

Instrument Used

Refers to the specific tool or device employed in a study, experiment, or assessment to collect data or measure variables.

Validity Evidence

Information or data that supports the accuracy and appropriateness of the inferences made from test scores or other assessment outcomes.

Accumulated Validity

The overall demonstration of a test's validity, based on the aggregation of evidence from multiple studies and sources over time.