If a material event occurs subsequent to the issuance of the financial statements that renders the audit report no longer reliable, the auditor should communicate that fact to all parties who are known to be relying on the audit report.

Question

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If a material event occurs subsequent to the issuance of the financial statements that renders the audit report no longer reliable, the auditor has a responsibility to communicate that information to all parties who are known to be relying on the audit report. This is in accordance with generally accepted auditing standards.

If a Material Event Occurs Subsequent to the Issuance of the Financial