Company a Hired Q to Perform Its Year-End Audit

Multiple Choice

Company A hired Q to perform its year-end audit. Subsequent to year-end, A discovers that one of its customers has filed for bankruptcy protection. Q should:

A) perform additional audit work to satisfy itself that the amount receivable from the customer is properly stated.
B) dual-date the audit report, noting the bankruptcy filing as the reason for the second date.
C) change the date of the audit report to include the time needed for additional testing.
D) Impossible to determine given lack of specifics.