When a Subsequent Event Provides Evidence About Conditions That Did

Multiple Choice

When a subsequent event provides evidence about conditions that did not exist at the balance sheet date,what is the best course of action for the auditor to follow?

A) Ensure that any necessary footnote disclosures be included with the statements.
B) Ensure that the financial statements are adjusted to reflect the information,including any necessary footnote disclosures.
C) Give an inappropriate opinion.
D) Provide management with a new engagement letter to document the terms of the revised arrangement.