Which of the Following Events Occurring After the Audit Report

question 25

Multiple Choice

Which of the following events occurring after the audit report release date most likely would cause auditors to make further inquiries about the previously-issued financial statements?

• A)An uninsured natural disaster occurs that may affect the entity's ability to continue as a going concern.
• B)A contingency is resolved that had been disclosed in the audited financial statements.
• C)New information is discovered concerning undisclosed lease transactions during the period under audit.
• D)A subsidiary is sold that accounts for 25% of the entity's consolidated net income.

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Definitions:

Rating Scales

Tools used in evaluations, allowing respondents to indicate their opinion or performance level along a continuum.

Ranking Method

An evaluation process where jobs or employees are compared to each other and ranked based on a predetermined criterion.

Talent Management

“A systemic attraction, identification, development, engagement/retention, and deployment of those individuals with high potential who are of particular value to the organization.”

High Potential

Refers to individuals within an organization identified as having the capability and aspiration to hold successive leadership positions within the company.