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

Narmada Infra Ltd's auditor reported on 10 August. Management later revised the financial statements, and after approval on 25 August the auditor performed procedures only on that amendment and not beyond. The new report is being drafted under a paragraph 12 situation allowing restricted procedures. Which statement about the report is most appropriate?

The report keeps the original 10 August date and adds a second date of 25 August with a reference to the amended note, stating that procedures after 10 August were restricted to the amendment. Replacing the date would wrongly suggest all work was brought up to date.

  1. AThe report should carry only the 25 August date, as the earlier date is superseded
  2. BThe report should carry only 10 August, as the amendment is not part of the audit
  3. CThe report should carry 10 August and an additional date of 25 August restricted to the amendment, with reference to the relevant noteCorrect
  4. DThe auditor should issue the report undated until the next AGM

Explanation

When the auditor amends the report with an additional date restricted to the amendment, the original date remains because it shows when the audit work on those statements was completed. The extra date, given with reference to the note, tells users that later procedures were limited to the amendment. Using only 25 August would imply the full audit was updated to that date.

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