Which Type of Subsequent Event Requires Consideration by Management and Evaluation

question 69

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) none of the above

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Definitions:

Communication Medium

The channel or method used to convey messages from sender to receiver, which can include verbal, non-verbal, written, or digital forms.

Media Richness

Describes the ability of a communication medium to effectively convey information and convey meaning through immediate feedback, multiple cues, and personalization.

Ambiguity

Refers to the quality of being open to more than one interpretation; lack of definiteness or certainty.

Communication Medium

The channel or method through which information is transmitted from sender to receiver, such as text, speech, video, or digital platforms.