Subsequent to the Date of the Financial Statements,as Part of Post-Balance

question 76

Essay

Subsequent to the date of the financial statements,as part of post-balance sheet date audit procedures,a CPA learned that a recent fire caused significant damage to one of the client's two manufacturing facilities.However,the loss will not be reimbursed by insurance.Newspapers in the area describe the event in detail and the event is widely known.The financial statements and related notes as prepared by the client did not disclose the fire loss. REQUIRED: Which type of audit report would you suggest be issued this year and why?

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Definitions:

Consensus

This term means general agreement among a group or the shared conclusions of a collective.

Stereotype

A generalized (sometimes accurate but often overgeneralized) belief about a group of people.

Latin-American

Pertaining to cultures and peoples of countries in the Americas where Romance languages, primarily Spanish and Portuguese, are spoken.

Impractical

Not sensible or realistic in application; not feasible in practice.