An example of an event occurring in the period of the auditor’s field work subsequentto the end of the year being audited that normally will not require disclosure in thefinancial statements or auditor’s report is(1) serious damage to the company’s plant from a widespread flood.(2) issuance of a widely advertised capital stock issue with restrictive covenants.(3) settlement of a large liability for considerably less than the amount recorded.(4) decreased sales volume resulting from a general business recession
An example of an event occurring in the period of the auditor’s field work subsequentto the end of the year being audited that normally will not require disclosure in thefinancial statements or auditor’s report is(1) serious damage to the company’s plant from a widespread flood.(2) issuance of a widely advertised capital stock issue with restrictive covenants.(3) settlement of a large liability for considerably less than the amount recorded.(4) decreased sales volume resulting from a general business recession
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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An example of an event occurring in the period of the auditor’s field work subsequent
to the end of the year being audited that normally will not require disclosure in the
financial statements or auditor’s report is
(1) serious damage to the company’s plant from a widespread flood.
(2) issuance of a widely advertised capital stock issue with restrictive covenants.
(3) settlement of a large liability for considerably less than the amount recorded.
(4) decreased sales volume resulting from a general business recession
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