A Client Acquires a Company on January 12, 20X1 While

Multiple Choice

A client acquires a company on January 12, 20X1 while its auditor is preparing the audit report for 20X0. Plans for this acquisition began in late December, 20X0, although the auditor was unaware of them. GAAS requires the auditor to:

A) include the purchase transaction in its audit work.
B) include the purchase transaction in the footnotes.
C) disclose the purchase transaction in the audit report.
D) depending on the circumstances, the auditor may choose any of the above.