Which of the following events occurring after the issuance of a set of financial statements and the
Question:
Which of the following events occurring after the issuance of a set of financial statements and the accompanying auditor’s report would be most likely to cause the auditor to make further inquiries about the financial statements?
a). A technological development in the industry that could affect the entity’s future ability to continue as a going concern.
b). The entity’s sale of a subsidiary that accounts for 30 percent of the entity’s consolidated sales.
c). The discovery of information regarding a contingency that existed before the financial statements were issued.
d). The final resolution of a lawsuit explained in a separate paragraph of the auditor’s report.
Probability & Statistics for Engineers & Scientists
ISBN: 978-0130415295
7th Edition
Authors: Ronald E. Walpole, Raymond H. Myers, Sharon L. Myers, Keying