When a Subsequent Event Provides Evidence About Conditions That Existed

Multiple Choice

When a subsequent event provides evidence about conditions that existed at the balance sheet date,what is the best course of action for the auditor to follow?

A) Assign a specialist.
B) Ensure that the financial statements are adjusted to reflect the information,including any necessary footnote disclosures.
C) Shop for an opinion that fits the desired type of event.
D) Provide management with a new engagement letter to document the terms of the revised arrangement.