Which Event That Occurred After the End of the Fiscal

question 19

Multiple Choice

Which event that occurred after the end of the fiscal year under audit but prior to issuance of the auditor's report would not require disclosure in the financial statements?

• A) sale of a bond or capital stock issue
• B) loss of plant or inventories as a result of fire or flood
• C) a significant decline in the market price of the corporation's stock
• D) settlement of litigation when the event giving rise to the claim took place after the balance sheet date

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Definitions:

Organizational Culture

The collection of values, expectations, and practices that guide and inform the actions of all team members within an organization.

FSGO Guidelines

Federal Sentencing Guidelines for Organizations; a set of rules designed to mitigate corporate crime by encouraging businesses to implement effective compliance and ethics programs.

Ethics Officers

Professionals within organizations responsible for developing, implementing, and overseeing policies that ensure ethical behavior and compliance with legal standards.

Hotlines

Designated phone lines or digital platforms provided for reporting emergencies, complaints, or issues, often related to safety, ethics, or customer service.