If an Entity Had Litigation Pending at the Date of the Financial

question 10

Multiple Choice

If an entity had litigation pending at the date of the financial statements and auditors learn of the outcome of this litigation following the date of their report (but prior to the audit report release date) , this is known as a(an) :

• A)omitted procedure.
• B)prior period adjustment.
• C)subsequent event.
• D)subsequently discovered fact.

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Definitions:

Cognitive Development

The study of how thinking, problem solving, and intelligence change as people grow from infancy through adulthood.

Age 11 Onward

A phrase denoting the period of life starting from the age of eleven, typically associated with pre-adolescence and subsequent stages of human development.

Sensorimotor Stage

The first stage in Piaget's theory of cognitive development, from birth to about 2 years old, where infants learn about the world through their sensory experiences and motor actions.

Cognitive Development

The progression of learning and development of the ability to think, solve problems, and understand the world around oneself, typically studied in children.