Final answer:
After issuing an audit report, auditors are not obliged to conduct further inquiries unless specific circumstances arise, such as resolving prior contingencies, going concern issues, peer reviews, or new data on undisclosed transactions. Option d is correct.
Step-by-step explanation:
After the issuance of the auditor's report, the auditor generally has no further obligation regarding the audited financial statements. However, certain circumstances may arise that do necessitate the auditor to take additional action. These circumstances include a final resolution of a contingency that led to a qualification in the auditor's report, a situation where a development may affect the company's going concern status, an investigation of the auditor's practice by a peer review committee, and the discovery of new information related to undisclosed related party transactions from the audited period.
New information is discovered concerning undisclosed related party transactions of the previously audited period. Related party transactions involve transactions between the client and parties closely related to the client, such as directors, major shareholders, or their family members. If new information comes to light regarding undisclosed related party transactions, the auditor may need to investigate further and consider the impact on the financial statements.