The Impact of a Subsequent Event on the Audit Report

question 11

Multiple Choice

The impact of a subsequent event on the audit report depends on whether it is detected before or after the ________.

• A)balance sheet date
• B)audit report date
• C)year-end date
• D)dual date

Learn how to compute the test statistic, including approximating sample size and pooling variances.

Identify when to use a t test for independent means versus other statistical tests.

Recognize the importance and meaning of statistical values in t tests (e.g., t value, p value, critical value).

Understand the interpretation of the test outcome (rejecting/accepting the null hypothesis).

---

Definitions:

Agency Action

Any action taken by a governmental agency, ranging from rule-making to enforcement and adjudication.

Unsubstantiated

Lacking adequate support, proof, or confirmation, often used in the context of claims or allegations that have not been verified.

Substantial Evidence

Evidence that is adequate and sufficient to support a conclusion or the finding of a fact in legal proceedings, more than a mere scintilla but less than a preponderance.

Formal Agency Adjudications

A process within administrative agencies where disputes are settled, similar to a trial but less formal, involving hearings before an administrative law judge.