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The audit client's year end is 12/31/2019. The audit report is dated 2/28/2020, and the financial statements are released 3/10/2020. Select from the option lists
The audit client's year end is 12/31/2019. The audit report is dated 2/28/2020, and the financial statements are released 3/10/2020. Select from the option lists provided the auditor's most likely action for the year under audit for each of the following material events. Each choice may be used once, more than once, or not at all. A lawsuit was settled on 2/1/2020 that was initiated against the client on 6/1/2019. No previous entry had been made. [Choose] A flood destroyed the client's inventory on 2/15/2020. [Choose ] A fire destroyed the client's office building on 3/15/2020. (Choose] An IRS judgment recorded on 12/31/2019 was ultimately settled for a significantly different amount on 3/25/2020 (Choose On March 20, 2020 the company announced that they plan to acquire another company in a significant transaction. A class action lawsuit was brought against the company by some of its former employees for workplace discrimination. The lawsuit was filed on January 10th, 2020. This lawsuit was not included in the letter from the attorneys requested by the auditors during the audit. No action required [Choose [Choose] [Choose] Disclose the information in a footnote in the December 31, 2019, financial statements Request the client revise and reissue the December 31, 2019 financial statements. The revision should involve the addition of a footnote, but no adju Request the client revise and reissue the December 31, 2019 financial statements. The revision should involve an adjustment to the December 31, 2 Adjust the December 31, 2019, financial statements. No action required No action is required
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