Which of the following events occurring after the issuance of an entity's financial statements and the auditor's report most likely would cause the auditor to make further inquiries about the 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 in the audited period.
D)A subsidiary that accounts for 25 percent of the entity's consolidated net income is sold.

Question

Quizplus · Accepted Answer

New information discovered concerning undisclosed lease transactions in the audited period could indicate that the financial statements and the auditor's report may not have fully captured the entity's financial position and operations, necessitating further inquiries.

Which of the Following Events Occurring After the Issuance of an Entity's