Auditors have no responsibility to continue to review their work after the audit

Question

Auditors have no responsibility to continue to review their work after the audit report release date, the reports and documentation could be reviewed for any of the following reasons.

PCAOB inspection

external peer review

firm's own quality control internal review

This is a good way to make sure that processes and procedures are followed in accordance with generally accepted auditing standards. And it is a good way to discover fraud on the auditor's side of the entire process. It is possible that the auditor is in on the questionable activity the client firm is undergoing.Arthur Andersen and Enron is one example.

Can anyone name any other examples where the auditors were also participating or turning a blind eye on the questionable activity?

Explanation / Answer

The examples where the auditor can also participate turning a blind eye on the questionable activity include:

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