When a Subsequent Event Provides Evidence About Conditions That Did

question 1

Multiple Choice

When a subsequent event provides evidence about conditions that did not exist at the balance sheet date,the auditor should do which of the following?

• 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:

Ideal Conditions

The most favorable environmental or operational conditions for conducting a study or achieving a desired outcome.

Efficacy

The ability to produce a desired or intended result, often used in the context of medications or treatments in clinical trials.

Clinical Trial

A research study that tests how well new medical approaches work in people.

Usual Circumstances

The typical or normal conditions or situations in which something is done or occurs.