When a contingency is resolved subsequent to the issuance of audited financial statements, which correctly contained disclosure of the contingency in the footnotesbased on information available at the date of issuance, the auditor should(1) take no action regarding the event.(2) insist that the client issue revised financial statements.(3) inform the audit committee that the report cannot be relied on.(4) inform the appropriate authorities that the report cannot be relied on
When a contingency is resolved subsequent to the issuance of audited financial statements, which correctly contained disclosure of the contingency in the footnotesbased on information available at the date of issuance, the auditor should(1) take no action regarding the event.(2) insist that the client issue revised financial statements.(3) inform the audit committee that the report cannot be relied on.(4) inform the appropriate authorities that the report cannot be relied on
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter15: Audit Reports For Financial Statement Audits
Section: Chapter Questions
Problem 8CYBK
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When a contingency is resolved subsequent to the issuance of audited financial statements, which correctly contained disclosure of the contingency in the footnotes
based on information available at the date of issuance, the auditor should
(1) take no action regarding the event.
(2) insist that the client issue revised financial statements.
(3) inform the audit committee that the report cannot be relied on.
(4) inform the appropriate authorities that the report cannot be relied on
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