Auditing and Attestation- Certified Public Accountant (CPA) Practice Exam -

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Prepare for the CPA Auditing and Attestation Exam. Leverage comprehensive materials, flashcards, and detailed explanations for each question. Master essential auditing concepts and techniques with confidence!

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In what situation is an auditor NOT responsible for obtaining additional evidence after issuing a report?

If a lawsuit was filed after the report was issued.
If subsequent events could significantly alter financial statements.
If no new relevant information arises.
If the client demands an amendment to the financials.

The correct answer is: If no new relevant information arises.

An auditor is not responsible for obtaining additional evidence after issuing a report in scenarios where no new relevant information arises. Once the auditor has completed the audit and issued the report, they have fulfilled their responsibility based on the information available at that time. If there are no subsequent events or new facts that could impact the conclusions drawn in the audit, the auditor is not obligated to gather further evidence. This ensures that the audit process remains efficient and that the auditor can focus on new tasks and responsibilities rather than revisiting completed work without justified cause. In contrast, if a lawsuit arises or if subsequent events have the potential to significantly alter the financial statements, or if the client requests an amendment, these situations would typically necessitate the auditor to reassess the information available and potentially gather additional evidence.