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

Gangotri Textiles Ltd's auditor signed the report on 20 May. Before the financial statements were issued, management amended Note 14 on 28 May for a matter and the auditor performed procedures restricted only to that amendment. The auditor decides to use dual dating. Which treatment of the report date is correct?

The auditor keeps 20 May as the report date and adds 'except as to Note 14, which is as of 28 May'. The original date shows when the audit work was completed, while the added date shows later procedures were limited to the amendment.

  1. AChange the report date to 28 May for the whole report and drop the 20 May date
  2. BRetain 20 May as the report date and add the statement 'except as to Note 14, which is as of 28 May'Correct
  3. CDate the report 20 May only and disclose the 28 May procedures in the engagement letter
  4. DDate the report 28 May and state that all procedures were extended to that date

Explanation

Under the dual dating illustration in SA 560, the original date stays because it tells the reader when audit work on those statements was completed. An additional date restricted to the amendment informs users that later procedures covered only that amendment. Replacing the date with 28 May wrongly implies all procedures were extended to that date.

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