Zero Corp. suffered a loss that would have a material effect on its financial statements on an uncollectible trade account receivable due to a customer’s bankruptcy. This occurred suddenly due to a natural disaster ten days after Zero’s balance sheet date, but one month before the issuance of the financial statements and the auditor’s report. Under these circumstances, The financial statements should be adjusted The event requires financial statement disclosure, but no adjustment The auditor’s report should be modified for a lack of consistency

a. Yes No No

b. Yes No Yes

c. No Yes Yes

d. No Yes No