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.

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Definitions:

Envisioning

The act of imagining or projecting a future state or goal in a detailed and vivid manner.

Energizing

To infuse with energy or vitality, invigorating and stimulating motivation or action.

Enabling

Providing the means or opportunity for someone to achieve something or to facilitate a process.

Resistance to Cultural Change

The reluctance or opposition faced when attempting to alter the established norms, values, and behaviors within a group or organization.