Homework Clinic
Social Science Clinic => Accounting => Topic started by: Hunchojack2019!! on Aug 21, 2022
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The audit firm issues an audit report for its client. The auditors have no obligation to make further inquiries with respect to the client's audited financial statements unless
◦ a development occurs that may affect the company's long-term viability as a company.
◦ final resolution was made on disclosed contingency for which no liability needed to be accrued.
◦ 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.
◦ a lawsuit, in which the risk of loss was considered remote, was resolved in the company's favor.
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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.