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:

Industrial Use

Refers to applications and activities involving manufacturing, production, and large-scale operations where equipment and machinery are used.

Control Transformer

A common type of isolation transformer generally used to change line voltage of 240 or 480 volts into 120 volts to operate motor-control equipment.

Auto

Refers generally to automobiles or the automation of systems, indicating self-operation or control of devices without direct human intervention.

Distribution

The process of distributing electrical energy from the transmission system to the end users or consumers effectively.