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:

Michael Jordan

A retired American professional basketball player widely regarded as one of the greatest basketball players of all time.

Model Airplane

A miniature representation of an airplane, constructed for recreational purposes or as a hobby project.

Subdials

Smaller dials or displays within a larger watch face that show additional information like date or stopwatch functions.

Tachometer

An instrument used to measure the rotation speed of a shaft or disk, as in a motor or other machine.