After the Balance Sheet Date but Prior to Issuance of the Auditor's

question 156

Multiple Choice

After the balance sheet date but prior to issuance of the auditor's report the auditor learns that the client's facility in a foreign country has been expropriated. Management refuses to disclose this information in a financial statement footnote or present pro-forma data as to the effect of the event. The auditor should

• A) add a footnote to the financial statements.
• B) disclaim an opinion due to the client-imposed scope limitation.
• C) provide the information in the report and modify the opinion.
• D) issue an unqualified opinion but provide the information in the auditor report.

---

Definitions:

Social

Relating to society or its organization, focusing on the interactions and relationships between individuals within a community.

Self-concept

An individual's perception of themselves, including beliefs about one's appearance, abilities, and personality traits.

Social

Pertaining to society or its organization.

Mastery Orientation

A belief that success stems from trying hard and that failures are influenced by factors that can be controlled, like effort.