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

Sharma & Co. signed its audit report on the financial statements of Kaveri Textiles Ltd on 20 May. After the report was issued, management amended Note 14 to correct a disclosure, and the auditor performed procedures restricted to that amendment, completing them on 12 June. The circumstances allow the auditor to restrict the procedures to the amendment. Which approach to dating the amended report is consistent with SA 560?

The auditor keeps the original report date of 20 May and adds a restricted date, such as 'except as to Note 14, which is as of 12 June'. The original date shows when the audit work was completed, and the extra date shows procedures after it were limited to the amendment.

  1. AReplace the original date with 12 June for the entire report
  2. BKeep 20 May and add an additional date such as 'except as to Note 14, which is as of 12 June'Correct
  3. CKeep 20 May and add no further date because the amendment is minor
  4. DUse the date of the board meeting that approved the amendment as the only date

Explanation

SA 560 on dual dating says that when the auditor amends the report with an additional date restricted to the amendment, the original date stays unchanged because it shows when the audit work on those statements was completed. The additional date tells users that later procedures were limited to the amendment. Replacing the date would wrongly imply all work was done by 12 June.

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