Which of the following would be a subsequent discovery of facts which would not require a response by the auditor?
A) discovery of the inclusion of material nonexistent sales
B) discovery of the failure to write off material obsolete inventory
C) discovery of the omission of a material footnote
D) discovery of management's intent to increase selling prices in the future

Question

Quizplus · Accepted Answer

The discovery of management's intent to increase selling prices in the future is not a matter requiring a response by the auditor as it is not a material misstatement or omission of financial information. A, B, and C are all examples of material misstatements or omissions that would require further action by the auditor.

Which of the Following Would Be a Subsequent Discovery of Facts