Which of the Following Events Occurring After the Audit Report

question 25

Multiple Choice

Which of the following events occurring after the audit report release date most likely would cause auditors to make further inquiries about the previously-issued financial statements?

• A)An uninsured natural disaster occurs that may affect the entity's ability to continue as a going concern.
• B)A contingency is resolved that had been disclosed in the audited financial statements.
• C)New information is discovered concerning undisclosed lease transactions during the period under audit.
• D)A subsidiary is sold that accounts for 25% of the entity's consolidated net income.

---

Definitions:

Standalone Keyword Summary

A concise overview or list of main keywords used independently from the context, often for the purpose of highlighting the core topics or themes.

Introductory Statement

An opening remark or paragraph that sets the stage for a speech, essay, or report, providing context or background.

Work History Section

A part of a resume or job application where an individual lists their previous employment experiences, including roles and responsibilities.

Career Objective

A statement on a resume that outlines an individual's professional goals and aspirations.