After the Financial Statements Have Been Issued, If a Subsequent

Multiple Choice

After the financial statements have been issued, if a subsequent discovery of facts occurs, that is, the auditor becomes aware that some information in the statements is materially misleading, the auditor should ask the client to issue an immediate revision. This is only required if:

A) the discovery of facts relates to developments that occurred after the date of the auditor's report.
B) management makes the discovery and informs the auditor.
C) the auditor makes the subsequent discovery of facts him or herself.
D) the facts discovered already existed at the audit report date.