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) decrease in the value of investments

Question

Quizplus · Accepted Answer

A decrease in the value of investments is a subsequent discovery that does not require a response by the auditor as it is a normal occurrence in the investment market. On the other hand, options A, B, and C are all material misstatements that require a response by the auditor, such as issuing a modified audit opinion or adjusting the financial statements.

Which of the Following Would Be a Subsequent Discovery of Facts