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, who owes Company A a material amount, has filed for bankruptcy protection. Assume that Q completed the audit work prior to the date of bankruptcy filing but has not yet issued the audit report. In this case, Q should:

A) ignore the event since it does not apply to the current year under audit.
B) notify those individuals known to be relying on its work of the bankruptcy.
C) perform additional work, as deemed necessary given the circumstances.
D) None of the above.