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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. On 5 June, before the financial statements were issued, management amended Note 12 on a contingent liability and the auditor performed procedures restricted to that amendment, completing them on 8 June. The auditor chooses to amend the report rather than issue a new one. Which dating approach is consistent with SA 560?

The auditor keeps the original date of 20 May and adds a restricted second date: '20 May, except as to Note 12, which is as of 8 June'. The original date shows when the audit work was completed, while the extra date shows that later procedures covered only the amendment.

  1. ARe-date the entire report to 8 June and drop the original date
  2. BKeep 20 May and add an additional date: '20 May, except as to Note 12, which is as of 8 June'Correct
  3. CKeep 20 May only, with no reference to the amendment
  4. DDate the report 5 June, the date management approved the amendment

Explanation

Under the dual dating illustration in SA 560, the original report date stays because it shows when audit work on those statements was completed. An additional date, restricted to the amendment, tells users that later procedures were limited to that amendment. Re-dating the whole report to 8 June would imply the full audit was extended to that date.

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