Skip to content

CA Final · Advanced Auditing, Assurance and Professional Ethics · Completion and Review

Gajanan & Co., chartered accountants, signed the audit report of Veda Textiles Ltd on 10 May. On 20 May, before the financial statements were issued, management amended one note to the financial statements, and the auditor performed procedures restricted to that amendment only. Under SA 560, what is the correct way to date the auditor's report?

The auditor keeps the original report date of 10 May and adds a second date restricted to the amended note, for example '10 May, except as to Note Y, which is as of 20 May'. The original date shows when the main audit work ended; the added date shows the limited later procedures.

  1. AReplace the original date with 20 May for the entire report
  2. BKeep 10 May and add an additional date restricted to the amendment, such as '10 May, except as to Note Y, which is as of 20 May'Correct
  3. CKeep 10 May and make no reference to the amendment
  4. DDate the report with the date of the annual general meeting

Explanation

When the auditor amends the report to include an additional date restricted to an amendment, the original date stays because it tells the reader when audit work on the earlier financial statements was completed. The additional date tells users that later procedures were limited to the amendment. Replacing the date with 20 May would wrongly suggest that all audit work was completed on that date.

Did you get it right without looking?

One question tells you little. A timed set on Completion and Review shows your real accuracy, how long you take and where you lose marks.

Practise Completion and ReviewFree diagnostic mock

More Completion and Review questions