Question 3. Which of the following statements, relating to the auditors responsibilities regarding subsequent events, if any, is/are correct?

Auditors have no responsibility to perform procedures to identify subsequent events after the date of the auditors report

If a material adjusting event is identified after the financial statements are issued, the auditor should modify the audit opinion if management refuses to adjust the financial statements

1 only

2 only

Both 1 and 2

Neither 1 nor 2