1. After issuance of the auditor’s report, the auditor has no obligation to make any further inquiries with respect to audited financial statements covered by an auditor’s report unless a a. C

1. After issuance of the auditor’s report, the auditor has no obligation to make any further inquiries with respect to audited financial statements covered by an auditor’s report unless a

a. Contingency is resolved.

b. Development occurs which may affect the clients ability to continue as a going concern.

c. material defalcation ensues

d. History of significant non-arms-length related party transactions is discovered.

2. If the size of the sample to be used in a particular test of controls has not been determined by utilizing statistical concepts, but the sample has been chosen in accordance with random selection procedures

a. No inferences can be drawn from the sample

b. The auditor has committed a non sampling error

c. Depending on the size of the sample, the auditor mayor may not achieve desired precision

d. The auditor will have to evaluate the results by reference to the principles of discovery sampling

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