When a Subsequent Event Provides Evidence About Conditions That Did

question 71

Multiple Choice

When a subsequent event provides evidence about conditions that did not exist at the balance sheet date,what is the best course of action for the auditor to follow?

• A)Ensure that any necessary footnote disclosures be included with the statements.
• B)Ensure that the financial statements are adjusted to reflect the information,including any necessary footnote disclosures.
• C)Give an inappropriate opinion.
• D)Provide management with a new engagement letter to document the terms of the revised arrangement.

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Definitions:

Macroevolution

Large-scale evolutionary changes that occur over geological time, leading to the emergence of new species and the extinction of others.

Evolutionary Changes

The alterations in the genetic makeup of populations over time, leading to the diversity of organisms found on Earth.

Species

An assembly of life forms made up of alike members that can interchange genes or mate with each other.

Microevolution

Evolutionary changes within a species or small group of organisms, particularly over a short period.