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CA Final · Advanced Auditing, Assurance and Professional Ethics · Prospective Financial Information and Other Assurance Services

CA Manoj is finalising his report on the examination of a projection prepared by Dhanvi Foods Ltd for a lender. Fieldwork procedures were completed on 12 June, the board approved the projection on 5 June, and Manoj plans to sign on 20 June after internal review of papers. Which date should the report on prospective financial information carry as per SAE 3400?

The report should be dated 12 June. SAE 3400 requires the date of the report to be the date on which the examination procedures have been completed, not the board approval date, the review date or the delivery date.

  1. A5 June, the date of board approval of the projection
  2. BThe date the lender receives the report
  3. C20 June, the date the internal review ends
  4. D12 June, the date the procedures were completedCorrect

Explanation

SAE 3400 lists the report content and states the date of report should be the date procedures have been completed. Here that is 12 June. The board approval date or a later signing date is not the prescribed date.

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