When a Subsequent Event Provides Evidence About Conditions That Existed

question 21

Multiple Choice

When a subsequent event provides evidence about conditions that existed at the balance sheet date,what is the best course of action for the auditor to follow?

• A)Assign a specialist.
• B)Ensure that the financial statements are adjusted to reflect the information,including any necessary footnote disclosures.
• C)Shop for an opinion that fits the desired type of event.
• D)Provide management with a new engagement letter to document the terms of the revised arrangement.