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:

Major Depressive Disorder

Severe depression that comes on suddenly and seems to have no external cause, or is too severe for current circumstances.

Substance-Abuse Disorder

A condition characterized by an unhealthy pattern of using one or more substances leading to significant impairment or distress.

Schizophrenia

A chronic brain disorder known for symptoms such as delusions, hallucinations, disorganized speech, and impaired cognitive ability.

DSM

The Diagnostic and Statistical Manual of Mental Disorders, a handbook used by healthcare professionals as the authoritative guide to diagnosing mental disorders.