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

Ramesh & Co., chartered accountants, signed the audit report of Kaveri Textiles Ltd on 20 May. After issue, management amends Note 12 of the financial statements, and the amendment is restricted to that note. The auditor decides to amend the report and add an additional date. As per SA 560, how should the dates be shown?

The auditor keeps the original report date and adds a second date limited to the amendment, for example "20 May, except as to Note 12, which is as of (date)". The original date shows when the audit work was completed, and the extra date shows that later procedures covered only the amendment.

  1. AReplace the original report date with the date of completion of procedures on the amendment
  2. BKeep the original report date and add an additional date restricted to the amendment, such as "20 May, except as to Note 12, which is as of (date)"Correct
  3. CDate the report with the date of the board meeting that approved the amendment, with no reference to 20 May
  4. DLeave the report undated until the amended financial statements are approved by the shareholders

Explanation

Under the dual dating illustration in SA 560, the original report date stays unchanged because it tells the reader when the audit work on the original financial statements was completed. An additional date is added to show that later procedures were restricted to the amendment. Replacing the date would wrongly imply that all the work was updated to the new date.

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