On February 9,Brown,CPA,expressed an Unmodified (Unqualified)opinion on the Financial Statements

question 8

Multiple Choice

On February 9,Brown,CPA,expressed an unmodified (unqualified) opinion on the financial statements of Web Co.On October 9,during a peer review of Brown's practice,the reviewer informed Brown that engagement personnel failed to perform a search for subsequent events for the Web engagement.Brown should first:

• A)Request Web's permission to perform substantive procedures that would provide a satisfactory basis for the opinion.
• B)Inquire of Web whether there are persons currently relying,or likely to rely,on the financial statements.
• C)Take no additional action because subsequent events have no effect on the financial statements that were reported on.
• D)Assess the importance of the omitted procedures to Brown's present ability to support the opinion.

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Definitions:

Orders

Directives issued by an authority, such as a court or government agency, that require parties to act or refrain from acting in a certain way.

Administrative Procedure Act

A law in the United States governing the process by which federal agencies develop and issue regulations, including a requirement for public participation.

Informal Rulemaking

A regulatory process involving the publication of a proposed rule and the solicitation of public comments before the rule is finalized.

Enabling Statute

Legislation that gives a government entity or agency the authority to implement and enforce specific laws.