After the Financial Statements Have Been Issued, If a 'Subsequent

question 14

Multiple Choice

After the financial statements have been issued, if a 'subsequent discovery of facts occurs' (the auditor becomes aware that some information in the statements is materially misleading) , the auditor should ask the client to issue an immediate revision.This is required only if:

• A) management makes the discovery and informs the auditor.
• B) the discovery of facts relates to developments that occurred after the date of the auditor's report.
• C) the facts discovered already existed at the audit report date.
• D) the auditor makes the subsequent discovery of facts himself or herself.