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

Sunrise Textiles Ltd's auditor signed the report on 20 May. After the report was signed but before it was issued, management amended Note 14 of the financial statements for a restatement, and the auditor performed procedures restricted to that amendment, completed on 28 May. Management does not otherwise change the financial statements. How should the auditor deal with the date of the report?

The auditor keeps the original report date of 20 May and adds a second date for the amendment, such as 20 May except as to Note 14, which is as of 28 May. The original date shows when the audit work was completed, and the extra date shows that later procedures were limited to the amendment.

  1. AChange the date of the whole report to 28 May and drop the original date
  2. BKeep 20 May as the report date and add an additional date for the amendment, for example 20 May, except as to Note 14, which is as of 28 MayCorrect
  3. CKeep 20 May only and not mention the later procedures
  4. DDate the report 28 May for Note 14 and leave the rest undated

Explanation

Under the dual dating illustration in SA 560, the original report date remains unchanged because it tells the reader when audit work on those statements was completed. An additional date is included to show that later procedures were restricted to the amendment. Replacing the date entirely would imply the whole audit was completed on 28 May, which is wrong.

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