When a Contingency Is Resolved Immediately Subsequent to the Issuance

question 36

Multiple Choice

When a contingency is resolved immediately subsequent to the issuance of a report that was modified with respect to the contingency, the auditor should:

• A)inform the audit committee that the report cannot be relied upon.
• B)insist that the client issue a revised financial report.
• C)inform the appropriate authorities that the report cannot be relied upon.
• D)take no action regarding the event.

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Definitions:

Increased Interest

A heightened level of attention, curiosity, or enthusiasm towards a particular subject or activity.

Unsupported

Lacking evidence, assistance, or foundation; not backed up by facts or help.

Learning Disability

A neurological disorder that affects a person's ability to understand, process, and communicate information, often impacting reading, writing, and mathematical skills.

Midsections

Refers primarily to the middle part of the human body, often focusing on the abdominal area but can also relate to the central part of any object or entity.