As Part of the Wrap-Up Procedures, Mary Ellen Dillon Reviews

Multiple Choice

As part of the wrap-up procedures, Mary Ellen Dillon reviews the minutes of the Board of Directors for a client. During her review, she discovers that a major acquisition is planned in the coming months. This planned acquisition should:

A) be disclosed in the footnotes to the financial statements.
B) be disclosed in an explanatory paragraph of the audit report.
C) be audited by the audit firm as part of its wrap-up work.
D) None of the above.