Question: When a subsequent event provides evidence about conditions that existed at the balance sheet date, what is the best course of action for the auditor

When a subsequent event provides evidence about conditions that existed at the balance sheet date, what is the best course of action for the auditor to follow?

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Ensure that the financial statements are adjusted to reflect the information, including any necessary footnote disclosures.

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Provide management with a new engagement letter to document the terms of the revised arrangement.

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Shop for an opinion that fits the desired type of event.

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Assign a specialist.

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