If,after Issuing an Audit Report,the Auditors Find That They Have

question 50

Multiple Choice

If,after issuing an audit report,the auditors find that they have failed to perform certain significant audit procedures they should first:

• A)Attempt to determine whether their report is still being relied upon by third parties.
• B)Notify regulatory agencies.
• C)Notify legal counsel.
• D)Wait until the beginning of the next year's audit to determine whether misstatements have occurred.

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Definitions:

Comparative Reports

Financial reports that show side-by-side comparisons of financial data for different periods, helping to identify trends or changes over time.

Vertical Analysis

A financial analysis method that expresses each item in a financial statement as a percentage of a base amount for comparison purposes.

Total Assets

The sum of all assets owned by a company, including cash, inventory, property, and equipment.

Comparative Income Statements

Financial reports that provide a side-by-side comparison of a company's income, expenses, and net earnings over different periods, facilitating trend analysis and performance evaluation.