Reference no: EM132756868

Problem 1: After issuing a report, an auditor has no obligation to make continuing inquiries or perform other procedures concerning the audited financial statements, unless

a. An information, which existed at the report date that affects the report, comes to the auditor's attention

b. The control environment changes after the issuance of the report

c. An information about an event that occurred after the end of field work comes to the auditor's attention

d. The final determinations or resolutions are made of contingencies that had been disclosed in the financial statements

Problem 2: Which of the following statements best expresses the auditor's responsibility with respect to events occurring in the subsequent period?

a. The auditor has no responsibility for events occurring in the subsequent period unless these events affect transactions recorded on or before the balance sheet date

b. The auditor's responsibility is to determine that transactions recorded on or before the balance sheet date actually occurred

c. The auditor is fully responsible for events occurring in the subsequent period and should extend all detailed procedures through the last day of the field work

d. The auditor is responsible for determining that a proper cutoff has been made and for performing a general review of events occurring in the subsequent period