After an Audit Report Containing an Unqualified Opinion on a Nonpublic

question 74

Multiple Choice

After an audit report containing an unqualified opinion on a nonpublic entity's financial statements is issued, the auditor learns that the entity has decided to sell the shares of a subsidiary that accounts for 30 percent of its revenue and 25 percent of its net income. The auditor should

• A) Determine whether the information is reliable and, if it is determined to be reliable, request that revised financial statements be issued.
• B) Notify the entity that the auditor's report may no longer be associated with the financial statements.
• C) Describe the effects of this subsequently discovered information in communications with persons known to be relying on the financial statements.
• D) Take no action because the auditor has no obligation to make any further inquiries.

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Definitions:

Combination Résumé

A type of résumé that merges the chronological and functional formats to highlight both your skills and employment history.

Career Summary

A brief statement or section on a resume highlighting a person's professional background and achievements.

Nonprofit Fundraising

The process of gathering voluntary contributions of money or other resources for the use of nonprofit organizations.

Internship Experience

A period of work experience offered by organizations for a limited period of time, often used by individuals to gain relevant skills and knowledge in a specific field.