After an auditor has issued an audit report on a nonpublic entity, there is no obligation to make any further audit tests or inquiries with respect to the audited financial statements covered by that report unless:
A)material adverse events occur after the date of the auditor's report.
B)final determination or resolution was made of a contingency which had been disclosed in the financial statements.
C)final determination or resolution was made on matters which had resulted in a qualification in the auditor's report.
D)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.

Question

Quizplus · Accepted Answer

The best choice is D. According to auditing standards, if an auditor becomes aware of new information which may have affected the report and if the financial statements are still available, the auditor should apply revised procedures as necessary and consider whether it is necessary to modify the original report. The other choices may require additional audit procedures as well, but they do not necessarily require a modification to the original audit report.

After an Auditor Has Issued an Audit Report on a Nonpublic