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

Which statement best describes the auditor's obligation after issuing a report?

1. Auditors are responsible for all events that occurred post-report date.

2. Auditors have no obligations unless new, significant events come to light.

3. Auditors must re-audit if the financial statements change.

4. Auditors are obligated to disclose all contingencies after the report.

The correct answer is: Auditors have no obligations unless new, significant events come to light.

The statement that auditors have no obligations unless new, significant events come to light accurately reflects the responsibilities of auditors after they have issued their report. Once the audit report is issued, the auditor's obligation related to the audited financial statements generally ceases, unless there are subsequent events or significant changes that could affect the accuracy or reliability of the audit report. Auditors are expected to review events that occur after the report date up until the date the financial statements are issued. However, their primary obligation is to ensure that they are aware of any material events that could potentially alter their opinion on the financial statements. If nothing significant arises, the auditor is not required to conduct further work or issue additional reports. In addition, circumstances requiring communication to stakeholders post-report date usually involve new information that was not known at the time of the audit, particularly if that information is significant enough to impact the users' understanding of the financial statements. Thus, this option accurately captures the nature of the auditor’s obligation after report issuance within the framework of auditing standards.