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

Ganga Infra Ltd's auditor signed the report on 12 June. Management then amends the financial statements for a subsequent event and the circumstances in paragraph 12 do not apply. Management approves the amended statements on 25 June. Which date is acceptable for the new auditor's report, and which procedures apply?

The new report must be dated no earlier than 25 June, the approval date of the amended statements, and the auditor extends the subsequent events procedures of paragraphs 6 and 7 to that new date. Retaining 12 June is not allowed because dual dating applies only in the paragraph 12 circumstances.

  1. A12 June, with procedures extended only on the amendment
  2. B25 June or later, with procedures under paragraphs 6 and 7 extended to the date of the new reportCorrect
  3. CAny date before 25 June, since approval does not matter
  4. D12 June, as dual dating is mandatory in all amendments

Explanation

Under the quoted paragraph 15(c), where paragraph 12 does not apply, the auditor extends the procedures in paragraphs 6 and 7 to the date of the new report and dates it no earlier than the date of approval of the amended statements, here 25 June. Dual dating applies only in the paragraph 12(a) circumstances, so 12 June is wrong.

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