A Client Acquired 25% of Its Outstanding Capital Stock After

Multiple Choice

A client acquired 25% of its outstanding capital stock after year-end and prior to completion of the auditor's fieldwork.The auditor should

A) advise management to adjust the balance sheet to reflect the acquisition.
B) issue pro forma financial statements giving effect to the acquisition as if it had occurred at year-end.
C) advise management to disclose the acquisition in the notes to the financial statements.
D) disclose the acquisition in the opinion paragraph of the auditor's report.