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

question 32

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:

Iron Ore

A natural mineral or rock from which iron can be profitably extracted, typically rich in iron oxides.

Caldera

A large volcanic crater typically formed by a major eruption leading to the collapse of the mouth of the volcano.

Metal-Rich Fluids

Liquids that contain high concentrations of metals, often found in geological settings where they can deposit valuable ore minerals.

Limestone

A sedimentary rock primarily composed of calcium carbonate (CaCO3), often formed from marine organisms' shells.