When a Contingency Is Resolved Immediately Subsequent to the Issuance

Multiple Choice

When a contingency is resolved immediately subsequent to the issuance of a report that was modified with respect to the contingency, the auditor should:

A) inform the audit committee that the report cannot be relied upon.
B) insist that the client issue a revised financial report.
C) inform the appropriate authorities that the report cannot be relied upon.
D) take no action regarding the event.