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)Discovery of management's intent to increase selling prices in the future

Question

Quizplus · Accepted Answer

The discovery of management's intent to increase selling prices in the future would not require a response by the auditor as it is not a material misstatement or omission in the financial statements. However, the other options (A, B, and C) all involve material misstatements or omissions that would require a response by the auditor.

Which of the Following Would Be a Subsequent Discovery of Facts