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The fieldwork for the December 3 1 , 2 0 X 8 audit of Pumpkin Corporation ended on March 1 3 , 2 0 X
The fieldwork for the December X audit of Pumpkin Corporation ended on March X The financial statements and auditor's report were issued and mailed to stockholders on March X In each of the situations below, select from the list at the end of the problem the appropriate action to be taken by the auditor. Assume all situations are material.Situations:
On April X you discovered that on February X a flood destroyed the entire uninsured inventory in one of Pumpkin's warehouses.
On February X you discovered that on February X a flood destroyed the entire uninsured inventory in one of Pumpkin's warehouses.
On February X you discovered that on November X a flood destroyed the entire uninsured inventory in one of Pumpkin's warehouses.
On April X you discovered that on March X a fire destroyed one of Pumpkin's plants.
On April X you discovered that a debtor of Pumpkin went bankrupt on January X
On January X a lawsuit was filed against Pumpkin for a patent infringement action that allegedly took place in early X In the opinion of Pumpkin's attorneys, there is a reasonable but not probable danger of a significant loss to Pumpkin.
On February X Pumpkin settled a lawsuit out of court that had originated in X and is currently listed as a contingent liability.
bAdjust the December X financial statements.
cDisclose the information in a footnote in the December X financial statements.
dRequest the entity revise and reissue the December X financial statements. The revision should involve an adjustment to the December X financial statements.
eRequest the entity revise and reissue the December X financial statements. The revision should involve the addition of a footnote, but no adjustment, to the December X financial statements.
fNo action is required.
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