Which of the Following Events Occurring After the Issuance of a Client's

question 60

Multiple Choice

Which of the following events occurring after the issuance of a client's financial statements and the auditor's report most likely would cause the auditor to make further inquiries about the previously issued financial statements?

• A) An uninsured natural disaster occurs that may affect the entity's ability to continue as a going concern.
• B) A contingency is resolved that had been disclosed in the audited financial statements.
• C) New information is discovered concerning undisclosed lease transactions in the audited period.
• D) A subsidiary that accounts for 25 percent of the entity's consolidated net income is sold.

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Definitions:

Queen Isabella

A key historical figure, Queen of Castile and León, known for her sponsorship of Christopher Columbus's 1492 voyage that led to the discovery of the Americas.

Admiral Zheng He

A prominent Chinese explorer and naval commander of the Ming dynasty known for his expeditions to Southeast Asia, South Asia, the Middle East, and East Africa.

Seafaring Technology

Innovations and advancements in the design, construction, and navigation of ships and boats, enabling exploration, trade, and military activities across seas and oceans.

Trading Economy

An economic system that relies heavily on the exchange of goods and services through trade, both domestically and internationally.