iii. Subsequent to the date of the financial statements, as part of your subsequent event audit procedures, you discovered that one of the client's two uninsured plants was damaged due to a recent fire. The newspapers described the event in detail but the financial statements and appended notes prepared by the client did not disclose the loss caused by the fire.

iii. Subsequent to the date of the financial statements, as part of your subsequent event audit procedures, you discovered that one of the client's two uninsured plants was damaged due to a recent fire. The newspapers described the event in detail but the financial statements and appended notes prepared by the client did not disclose the loss caused by the fire.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter14: Completing A Quality Audit

Section: Chapter Questions

Problem 6RQSC

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the following independent situation, discuss the issue and describe the impact on the audit record with provide example Ii.Subsequent to the date of the financial statements, as a part of your subsequent event audit procedures, you observed that one of the purchaser’s two uninsured flora was broken because of a recent fireplace. The newspapers defined the occasion in element but the monetary statements and appended notes prepared by means of the purchaser did now not disclose the loss due to the fire.
Subsequent to the date of the financial statements as part of his post balance sheet date auditprocedures a CPA learned that a recent fire caused heavy damage to one of a client's two plants ;the loss will not be reimursed by insurance. The newspapers described the event in detail.. thefinacial statements and footnotes as prepared by the client did not disclose the loss caused by thefire. Which of the following is a condition requiring a departure from a standard unmodified auditopinion A. Failure to follow GAAP B. Scope restriction C. Change in Accounting Principle D. None of the above
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