40. McBlahBlah, LLP (MBB) is auditing the Year 1 financial records…

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Question Answered step-by-step 40. McBlahBlah, LLP (MBB) is auditing the Year 1 financial records… 40. McBlahBlah, LLP (MBB) is auditing the Year 1 financial records of Coming Up With Names Is Really Difficult, Ya’ll (CUWNIRDY), LLC, a publicly-traded manufacturing company. CUWNIRDY has a December 31 year-end. MBB performed its year-end audit during January and February of Year 2. The financial statements were scheduled to be issued on March 20, Year 2. The date of the audit report is March 15, Year 2. On March 17, Year 2, MBB was informed that there was a warehouse fire that destroyed 75% of CUWNIRDY’s inventory, which represented about 10% of total assets. CUWNIRDY added a note to the financial statements disclosing this fact. MBB was able to read the note and confirm the figures with the insurance adjuster on March 18. A) How does the above affect the audit report date? (1 point)B) Explain. (1 point)  Business Accounting ACC 336 Share QuestionEmailCopy link Comments (0)