If an Entity Had Litigation Pending at the Date of the Financial

question 45

Multiple Choice

If an entity had litigation pending at the date of the financial statements and auditors learn of the outcome of this litigation following the date of their report (but prior to the audit report release date) ,this is known as a(n)

• A) omitted procedure.
• B) prior period adjustment.
• C) subsequent event.
• D) subsequently discovered fact.

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Definitions:

Constant Allowances

Fixed sums or quantities that are allocated regularly, such as allowances in budgets or time estimations in project management.

Performance Rating

A quantitative assessment often used to evaluate the efficiency, output, or success of an individual, system, or organization in achieving its objectives.

Normal Time

The average time that a worker takes to complete a specific task under normal working conditions, considering both productive and unproductive time.

Standard Time

indicates the amount of time that should be taken to complete a particular job or task, typically determined through time studies and used for planning and benchmarking.