If a Subsequent Event That Has a Material Effect on ICFR

question 48

Multiple Choice

If a subsequent event that has a material effect on ICFR is discovered after the financial report date, but existed at year-end, the duty of the auditor is to:

• A) disclose the event in the audit report and issue a qualified opinion.
• B) disclose the event in the audit report and issue an adverse opinion on the ICFR.
• C) disclose the event in the audit report and add an explanatory paragraph.
• D) depending on the circumstances, the auditor may choose any of the above.

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Definitions:

Selective Exposure

The process of allowing only a portion of the information revealed to be organized, interpreted, and permitted into awareness.

Benefits Important To The Prospect

Features or aspects of a product or service that are particularly valued or needed by a potential client or customer.

Unique Product Features

Specific characteristics of a product that set it apart from competitors' offerings in the market.

Benefits

Advantages or positive outcomes that result from a product, service, or action.