Assume That T

question 8

Multiple Choice

Assume that T.Rory is auditing the financial statements of Augusta,Inc.Rory completes fieldwork on February 25 and issues the report (along with Augusta's financial statements) on March 1.On March 3,a hurricane destroys a warehouse that contains a significant amount of uninsured inventory.Which of the following best describes Rory's responsibility with respect to the effects of this hurricane on Augusta's financial statements?

• A) Because the inventory was included in the financial statements audited by Rory, he is required to perform additional procedures and reissue his report on the revised financial statements.
• B) Because the hurricane occurred after the date of Rory's report, he has no responsibility to perform additional procedures or reissue his report.
• C) Because the hurricane occurred prior to the next fiscal quarter, Rory is required to perform additional procedures and reissue his report on the revised financial statements.
• D) Because the hurricane occurred after the release of the financial statements and Rory's report, he has no responsibility to perform additional procedures or reissue his report.

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Definitions:

Marketing Actions

Initiatives or activities undertaken to promote and sell products or services to a target audience.

Contextual Approach

A method that takes into account the environment, circumstances, or background of a subject to better understand its behavior or function.

Competitors

Are entities or individuals that compete within the same market or field, aiming to achieve goals such as higher sales or superior performance.

Morally Illegitimate

Refers to actions or practices that are deemed unethical or not acceptable based on societal norms and moral principles.