After the report has been issued, the auditor has a passive duty to consider subsequent events only if something comes to their attention.

After the report has been issued, the auditor has a passive duty to consider subsequent events only if something comes to their attention.

• A. True
• B. False
• C. Always active
• D. Never

Answer: (A)

Subsequent events after the reporting date are looked at up to the point of issuing the auditor’s report, but once the report is issued, the auditor’s responsibility becomes passive. They do not actively search for new information; they only consider subsequent events if something comes to their attention. If new information is brought to light and it’s material, it may require reconsideration of the financial statements or disclosure, potentially leading to actions like revision or a new report. Therefore, the statement is correct: after issuance, the auditor’s duty is passive and triggered only when something comes to their attention.

Subsequent events after the reporting date are looked at up to the point of issuing the auditor’s report, but once the report is issued, the auditor’s responsibility becomes passive. They do not actively search for new information; they only consider subsequent events if something comes to their attention. If new information is brought to light and it’s material, it may require reconsideration of the financial statements or disclosure, potentially leading to actions like revision or a new report. Therefore, the statement is correct: after issuance, the auditor’s duty is passive and triggered only when something comes to their attention.