On February 9,Brown, CPA, expressed an unmodified (unqualified)opinion on the financial statements of Web Co. On October 9,during a peer review of Brown's practice, the reviewer informed Brown that engagement personnel failed to perform a search for subsequent events for the Web engagement. Brown should first:

A)Request Web's permission to perform substantive procedures that would provide a satisfactory basis for the opinion.
B)Inquire of Web whether there are persons currently relying, or likely to rely, on the financial statements.
C)Take no additional action because subsequent events have no effect on the financial statements that were reported on.
D)Assess the importance of the omitted procedures to Brown's present ability to support the opinion.

The monthly demand equation for an electric utility company is estimated to be p equals 60 minus left parenthesis 10 superscript negative 5 baseline right parenthesis x, where p is measured in dollars and x is measured in thousands of killowatt-hours. the utility has fixed costs of $3 comma 000 comma 000 per month and variable costs of $32 per 1000 kilowatt-hours of electricity generated, so the cost function is upper c left parenthesis x right parenthesis equals 3 times 10 superscript 6 baseline plus 32 x. (a) find the value of x and the corresponding price for 1000 kilowatt-hours that maximize the utility's profit. (b) suppose that the rising fuel costs increase the utility's variable costs from $32 to $38, so its new cost function is upper c 1 left parenthesis x right parenthesis equals 3 times 10 superscript 6 baseline plus 38 x. should the utility pass all this increase of $6 per thousand kilowatt-hours on to the consumers?