Auditing and Assurance Services 1st Edition by Iris Stuart

Exercise 20

Which of the following events occurring after the issuance of the financial statements most likely would cause the auditor to make further inquiries about 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 is resolved that had been disclosed in the audited financial statements.
C) New information is discovered concerning undisclosed lease transactions of the audited period.
D) A subsidiary is sold that accounts for 25% of the entity's consolidated net income.