Your Client Has Experienced a Major Data Breach with Lawsuits

question 42

Multiple Choice

Your client has experienced a major data breach with lawsuits and fines pending of significant and uncertain amounts.These events are disclosed in the client's financial statements and are clearly explained in the notes.How do these events affect the independent auditor's report?

• A)The auditor would issue an unmodified auditor's report.
• B)The auditor would include an Emphasis of Matter paragraph titled "Data Breach" to highlight the events.
• C)The auditor would include an Other Matters paragraph titled "Data Breach" to highlight the amounts.
• D)The auditor issue a modified audit opinion due to the size of the uncertainty.