Auditing and Attestation - Certified Public Accountant (CPA) Practice Exam 2025 - Free CPA Practice Questions and Study Guide

Inquiring about management's plans post year-end is essential for auditors to assess various aspects of the financial statements and the entity's financial health. Among the options provided, determining compliance with tax regulations does not directly align with why auditors would inquire about management's plans after the reporting period.

Auditors typically focus on factors like going concern issues, as understanding management's plans can help assess whether the entity can continue its operations for the foreseeable future. Evaluating cash flow estimates is also crucial, as it helps the auditor gauge the entity's liquidity and ability to meet obligations. Understanding potential impacts on reported financial results is paramount, especially if events occurring after year-end could significantly alter the financial position or performance of the business.

In contrast, compliance with tax regulations is generally a separate process from assessing financial viability or future plans. While tax compliance is certainly important, it is not typically influenced by management's post-year-end plans in the same way that matters related to going concern, liquidity, and financial results are. Therefore, this option stands out as not being a principal reason for such inquiries.