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

Rohan & Co. signed its audit report on the financial statements of Veda Textiles Ltd. on 20 May. On 5 June, management amended Note 14 alone, with the auditor's agreement, to correct a disclosure. The auditor performed procedures restricted to that amendment, completed on 8 June, and amends the report using dual dating. Which dating is correct under SA 560?

The auditor keeps the original date of 20 May and adds 'except as to Note 14, which is as of 8 June'. The original date shows when the audit work was completed, and the additional date shows when procedures restricted to the amendment were completed.

  1. AReplace the report date with 8 June for the whole report
  2. BRetain 20 May and add 'except as to Note 14, which is as of 8 June'Correct
  3. CRetain 20 May and add 'except as to Note 14, which is as of 5 June' because that is when management amended it
  4. DUse 5 June as the sole date because it is the date of the amendment

Explanation

Under dual dating, the original report date stays unchanged because it shows when the audit work on those statements was completed. An additional date is added to show that later procedures were restricted to the amendment, and that date is when those restricted procedures were completed (8 June). Using 5 June, the date of management's amendment, is wrong because the additional date reflects the completion of the auditor's procedures, not management's action.

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