Company a Hired Q to Perform Its Year-End Audit

question 37

Multiple Choice

Company A hired Q to perform its year-end audit. Subsequent to year-end, A discovers that one of its customers has filed for bankruptcy protection. Q should:

• A) perform additional audit work to satisfy itself that the amount receivable from the customer is properly stated.
• B) dual-date the audit report, noting the bankruptcy filing as the reason for the second date.
• C) change the date of the audit report to include the time needed for additional testing.
• D) Impossible to determine given lack of specifics.

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Definitions:

Subdirectory

A directory that is contained within another directory in a filesystem hierarchy, also known as a child directory.

URL

Uniform Resource Locator, the address of a resource on the Internet, specifying its location on a computer network.

Protocol

A set of rules or procedures for transmitting data between electronic devices, such as computers, ensuring successful communication.

Domain Name

A human-readable address used to access websites on the internet, essentially serving as an easy-to-remember alternative to numerical IP addresses.