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When a Subsequent Event Provides Evidence About Conditions That Existed

Question 27

Multiple Choice

When a subsequent event provides evidence about conditions that existed at the balance sheet date,the auditor should do which of the following?


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.

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