Final answer:
The correct option is 'a', an auditor has further obligations after issuing an audit report if new information arises concerning prior events that may affect the report.
Step-by-step explanation:
After an auditor has issued an audit report on a nonpublic entity, the auditor is generally not obliged to perform any further audit tests or inquiries concerning the audited financial statements covered by that report. However, there are certain conditions under which the auditor may have a responsibility to take action post-issuance of the report. These conditions include if:
- 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.
- Material adverse events occur after the date of the auditor's report.
- Final determination or resolution was made on matters that had resulted in a qualification in the auditor's report.
- Final determination or resolution was made of a contingency that had been disclosed in the financial statements and no liability arose from the resolution.
The correct option in this scenario is 'a' - if new information comes to attention that may have affected the audit report and pertains to an event that occurred prior to the date of the auditor's report. This mirrors the expectation for bank supervisors that arose in the 1990s, where findings are required to be public, and action is expected when problems are identified to avoid the type of financial issues that were questioned during the 2008-2009 recession.