Take the following as truth: In addition to following up on significant reported findings and recommendations7 from previous financial audits, auditors should consider significant findings identified in attestation engagements, performance audits, or other studies if these findings could materially affect the results of the financial audit.
Then the following statement: "Previous financial audits are in power for as long as it takes to the next audit, and the companies can be punished for not following on their advice." is true, false, or inconclusive?