Subsequent to the issuance of the auditors’ report, the auditors became aware of facts existing at the report date that would have affected the report had the auditors then been aware of them. After determining that the information is reliable, the auditors should next:

(a) notify the board of directors that the auditors’ report must no longer be associated with the financial statements.

(b) determine whether there are persons relying, or likely to rely, on the financial statements who would attach importance to the information.

(c) request that management disclose the effects of the newly discovered information by adding a note to subsequently issued financial statements.

(d) issue revised pro forma financial statements, taking into consideration the newly discovered information.

Choose the best answer.