Multiple Choice
Which of the following events occurring after the issuance of an auditor's report most likely would cause the auditor to make further inquiries about the previously issued financial statements?
A) A lawsuit is resolved that is explained in a separate paragraph of the prior-year's auditor's report.
B) New information is discovered concerning undisclosed related party transactions of the prior year.
C) A technological development occurs that affects the entity's ability to continue as a going concern.
D) The entity sells a subsidiary that accounts for 35% of the entity's consolidated sales.
Correct Answer:

Verified
Correct Answer:
Verified
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