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 The event The auditor’s financial requires financial report should statements statement be modified should be disclosure, but for a lack of adjusted no adjustment consistency

a. Yes No No

b. Yes No Yes

c. No Yes Yes

d. No Yes No