Ambrose is auditing the financial statements of Mays (dated December 31,2012).The date of the auditors' report is February 17,2013 and the audit report release date is February 20,2013.For which of the following matters would Ambrose have the least responsibility:
A) The obsolescence of inventory held on December 31, 2012 that was identified on January 20, 2013.
B) A customer's deteriorating financial condition that was identified on February 19, 2013.
C) A merger that was announced by Mays and known by Ambrose on February 12, 2013.
D) A major loss due to a catastrophe that occurred and was known by Ambrose on March 1, 2013.

Question

Quizplus · Accepted Answer

Ambrose has the least responsibility for events occurring after the audit report release date, which is February 20, 2013. The major loss due to a catastrophe on March 1, 2013, falls outside the period of responsibility.

Ambrose Is Auditing the Financial Statements of Mays (Dated December