Assume that Roy is auditing the financial statements of Augusta Incorporated Roy complete his field work on February 25th and his report (along with Augustus financial statements) is issued on March 1st on March 3rd a hurricane destroyed a warehouse that contains a significant amount of uninsured inventory which of the following best describes Roy's responsibilities with respect to the effects of this hurricane on Augusta's financial statements?

a. because the inventory was included in the financial statements audited by Roy he is required to perform additional procedures and reissue his report on the revised financial statements

b. because the hurricane occurred after the day of Roy's report he has no responsibility to perform additional procedures or reissue his report

c. because the hurricane occurred prior to the next fiscal quarter Roy is required to perform additional procedures and reissue his report on the revised financial statements

d. because the hurricane occurred after the release of the financial statements and Roy's report he has no responsibility to perform additional procedures or reissue his report

Answer rating: 100% (QA)

Answer Explanation Given case Roy is auditing the financial ... View the full answer