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In Auditing the Financial Statements of Star Corp

Question 256

Multiple Choice

In auditing the financial statements of Star Corp., Land discovered information leading Land to believe that Star's prior year's financial statements, which were audited by Tell, require substantial revisions. Under these circumstances, Land should:


A) Notify Star's audit committee and stockholders that the prior year's financial statements cannot be relied on.
B) Request Star to reissue the prior year's financial statements with the appropriate revisions.
C) Notify Tell about the information and make inquiries about the integrity of Star's management.
D) Request Star to arrange a meeting among the three parties to resolve the matter.

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