Question

In auditing the financial statements of Star Corp., a nonissuer, Land discovered information leading Land to believe that Star’s prior-year financial statements, which were audited by Tell, require substantial revisions. Under these circumstances, Land should _______.

Answer 1

Answer:

4.

Explanation:

Based on the scenario being described within the question it can be said that under these circumstances, Land should request Star to arrange a meeting among the three parties to resolve the matter. Otherwise if left unattended it could lead to various complications for all three parties involved. Therefore the best option would be to analyze and revise the necessary information as fast as possible.

Answer 2

Answer: request Star to arrange a meeting among the three parties to resolve the matter

Explanation: When information regarding the integrity of a company's financial statement which has been previously audit arises, it becomes imperative for all involved parties to collaborate on highlighting and resolving the issue. Tell would have to be presint because they were responsible for auditing Starr company's financial statement that year, Star corps. is the organization which was audited and therefore will be required to call for a meeting which should also include Land, who discovered informations which could necessitate substantial revision of Star's financial statement.