Which Type of Subsequent Event Requires Consideration by Management and Evaluation

question 48

Multiple Choice

Which type of subsequent event requires consideration by management and evaluation by the auditor?

• A) Subsequent events that have no direct effect on the financial statements but for which disclosure is advisable
• B) Subsequent events that have a direct effect on the financial statements and require adjustment
• C) Both A and B
• D) Neither A nor B

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Definitions:

Unnecessary Human Suffering

Human distress or hardship that could be avoided or mitigated through alternative actions or policies.

Extra Morphine

The administration of morphine in addition to the standard or initially planned dosage, often for pain management.

Conventional

Following traditional forms and genres, relying on established norms and practices.

Nuclear Power

The use of sustained nuclear fission to generate heat and electricity.