Which of the following events occurring after the audit report release date most likely would cause auditors to make further inquiries about the previously issued financial statements?
A) An uninsured natural disaster occurs that may affect the entity's ability to continue as a going concern.
B) A contingency that had been disclosed in the audited financial statements is resolved.
C) New information concerning undisclosed lease transactions during the period under audit is discovered.
D) A subsidiary that accounts for 25% of the entity's consolidated net income is sold.

Question

Quizplus · Accepted Answer

New information concerning undisclosed lease transactions during the period under audit could indicate that the financial statements were materially misstated, prompting further inquiries.

Which of the Following Events Occurring After the Audit Report