Ambrose is auditing the financial statements of Mays (dated December 31, 2014). The date of the auditor’s report is February 17, 2015, and the audit report release date is February 20, 2015. For which of the following matters would Ambrose have the least responsibility?
a. The obsolescence of inventory held on December 31, 2014, that was identified on January 20, 2015.
b. A customer’s deteriorating financial condition that was identified on February 19, 2015.
c. A merger that was announced by Mays and known by Ambrose on February 12, 2015.
d. A major loss due to a catastrophe that occurred and was known by Ambrose on March 1, 2015.