ABC Auditors Are Auditing Jersey Charities, Which Is Incorporated as a Not-For-Profit

question 34

Multiple Choice

ABC Auditors are auditing Jersey Charities, which is incorporated as a not-for-profit charitable organization. The fiscal year-end is June 30, 20X0. The auditors concluded their work on July 15^th, 20X0 and dated their audit report on that date. On July 20th, a major donor declared bankruptcy, leaving in serious doubt collection by Jersey of material pledges owed. The auditors should:

• A) recall the audit report and re-issue a new one.
• B) issue an amendment to the audit report dated July 20^th.
• C) determine if the financial statements have been made available.
• D) depending on the circumstances, the auditor may choose any of the above.

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Definitions:

Coffee Shop

A retail establishment that sells coffee, tea, and other beverages, often accompanied by snacks or light meals.

Supermarket Chain

A network of large retail stores offering a wide variety of goods including groceries and household items.

Kruskal-Wallis Test

A non-parametric method for testing whether samples originate from the same distribution, used when the assumptions of the ANOVA are not met.

Wilcoxon Rank-sum Test

A nonparametric test used to assess whether two independent samples come from the same distribution, focusing on their median ranks.