Question: You completed the fieldwork for the December 3 1 , 2 0 2 1 audit of Dewman Industries on February 1 5 , 2 0

You completed the fieldwork for the December 31,2021 audit of Dewman Industries on February 15,2022 and delivered the completed statements with auditor's report on March 1,2022. For this highly materialevent, indicate the appropriate action from the alternatives listed below.
On June 14,2022, the auditor discovered that a debtor of Dewman went bankrupt on April 2,2022. The sale had taken place October 15,2021, but the amount appeared collectible at December 31,2021, and February 15,2022.
Group of answer choices
No action is required.
Adjust the December 31,2021 financial statements.
Disclose the information in the December 31,2021 financial statements.
Request the client to recall the December 31,2021financial statements.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!