Which of the Following Would Be a Subsequent Discovery of Facts

question 153

Multiple Choice

Which of the following would be a subsequent discovery of facts which would not require a response by the auditor?

• A) discovery of the inclusion of material nonexistent sales
• B) discovery of the failure to write off material obsolete inventory
• C) discovery of the omission of a material footnote
• D) discovery of management's intent to increase selling prices in the future

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Definitions:

Perfectly Elastic

A term used in economics to describe a situation where the quantity demanded or supplied changes infinitely in response to any change in price.

Expected Rates

Anticipated figures or percentages, often pertaining to finance, such as interest rates or returns on investment.

MU/P

The ratio of marginal utility to price, used to measure the additional satisfaction gained per unit of currency spent.

Competing Products

Goods or services that serve as alternatives to each other, satisfying the same need or want, and thus compete in the same market.