When a Subsequent Event Provides Evidence About Conditions That Did

question 71

Multiple Choice

When a subsequent event provides evidence about conditions that did not exist at the balance sheet date,what is the best course of action for the auditor to follow?

• A)Ensure that any necessary footnote disclosures be included with the statements.
• B)Ensure that the financial statements are adjusted to reflect the information,including any necessary footnote disclosures.
• C)Give an inappropriate opinion.
• D)Provide management with a new engagement letter to document the terms of the revised arrangement.

Differentiate between the roles of firm-specific risk and market-wide risk in asset pricing models.

Understand the composition of U.S. household assets and liabilities in 2018.

Differentiate between real and financial assets and their significance in the economy.

Recognize the value and functions of financial securities, including derivatives and fixed-income securities.