Audited financial statements covered by an auditors report

Reference no: EM132292

Question:

1. After issuance of the auditor's report, the auditor has no obligation to create any further inquiries with respect to audited financial statements covered by an auditor's report unless a

a. Contingency is resolved.

b. Development occurs which can affect the clients ability to continue as a going concern.

c. material defalcation ensues

d. History of important non-arms-length related party transactions is discovered.

2. If the size of the illustration to be used in a particular test of controls has not been calculated by utilizing statistical concepts, but the sample has been selected in accordance with random selection procedures

a. No inferences will be drawn from the sample

b. The auditor has committed a non sampling error

c. Depending on the size of the sample, the auditor mayor can't achieve desired precision

d. The auditor will have to compute the results by reference to the principles of discovery sampling

Reference no: EM132292

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