Company A hired Q to perform its year-end audit. Subsequent to the completion of field work, but prior to the issuance of the financial statements, A discovers that one of its customers has filed for bankruptcy protection. Assume that Q decides to perform additional work to determine the affect of the bankrupt customer on A's financial statements, then Q:
A) should issue a dual-dated report.
B) should expand the testing procedures and wrap-up work in order to extend the report date.
C) amend the financial statements with a footnote and issue the audit report as planned.
D) Either "a" or "b" depending on the amount of additional testing performed.

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The Answer of Company A hired Q to perform its year-end audit. Subsequent to the completion of field work, but prior to the issuance of the financial statements, A discovers that one of its customers has filed for bankruptcy protection. Assume that Q decides to perform additional work to determine the affect of the bankrupt customer on A's financial statements, then Q:
A) should issue a dual-dated report.
B) should expand the testing procedures and wrap-up work in order to extend the report date.
C) amend the financial statements with a footnote and issue the audit report as planned.
D) Either "a" or "b" depending on the amount of additional testing performed.

Company a Hired Q to Perform Its Year-End Audit