Subsequent events after issuance of audit report. Assume that the audit report for your client has been signed and distributed to outsiders. What is your responsibility related to new information that comes to your attention? Are you required to search for new information all year? Provide an example of a situation in which an auditor would have to disclose information to outsiders and one in which the auditor would have no responsibility to disclose information to outsiders.
Answer to relevant QuestionsDuring the audit of contingent liabilities, your audit client provides the following information regarding potential liabilities:• Your client has agreed to guarantee a loan in the amount of $5,000,000 for a related party ...In its 2005 annual report, IBM disclosed the following subsequent events:• On February 15, 2006, the company completed the acquisition of Micromuse for approximately $875 million. Micromuse is a publicly traded software ...Is an audit report with an explanatory paragraph a clean opinion? Explain your answer. Discuss auditors’ various reporting responsibilities. Why are they important to the audit report? Review the audit reports for General Mills found in the chapter.a. How do the General Mills reports differ from those for Dell Computers? b. What audit opinion did General Mills receive on the financial statements? c. ...
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