A Major Customer of an Audit Client Suffers a Fire

Multiple Choice

A major customer of an audit client suffers a fire just prior to completion of year-end fieldwork. The audit client believes that this event could have a significant direct effect on the financial report. The auditor should:

A) advise management to disclose the event in notes to the financial report.
B) disclose the event in the auditor's report.
C) withhold submission of the auditor's report until the extent of the direct effect on the financial report is known.
D) advise management to adjust the financial report.