Question

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) a development occurs that may affect the company's long term viability as a company.
B) final resolution was made on disclosed contingency for which no liability needed to be accrued.
C) 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.
D) a lawsuit, in which the risk of loss was considered remote, was resolved in the company's favor.

Answer 1

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.

Step-by-step explanation:

The subject of this question is Business.

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. This means that if there is a significant event or condition that could threaten the client's ability to continue as a going concern, the auditors are required to investigate and consider the implications for the financial statements.

Therefore, option A) is the correct answer because it highlights the need for auditors to make further inquiries in such situations.