Click to expand menu items Click to collapse menu items. The following auditing standard is not the current version and does not reflect any amendments effective on or after December 31, The auditor should date the audit report no earlier than the date on which the auditor has obtained sufficient appropriate evidence to support the auditor's opinion. Note: When performing an integrated audit of financial statements and internal control over financial reporting, the auditor's reports on the company's financial statements and on internal control over financial reporting should be dated the same date. Note: If the auditor concludes that a scope limitation will prevent the auditor from obtaining the reasonable assurance necessary to express an opinion on the financial statements, then the auditor's report date is the date that the auditor has obtained sufficient appropriate evidence to support the representations in the auditor's report. The auditor has no responsibility to make any inquiry or carry out any auditing procedures for the period after the date of his report.
What now? Responding to a subsequent discovery of fact
In May 20X3, an auditor reissues the auditor's report on the 20X1 financial statements at a continuing client's request. The 20X1 financial statements are not restated, and the auditor does not revise the wording of the report. The auditor should:. Answer C.
Subsequent Events and Subsequently Discovered Facts AU-CSection Subsequent Events and Subsequently Discovered Facts Source:SASNo;SASNo Effective for audits of financial statements for periods ending on or afterDecember15, NOTE InMay,theAuditingStandardsBoard(ASB)issuedSASNo,Om-. Apr 10, What is the point in reissuing a financial statement if you're not going to change anything? an auditor reissues the auditor's report on the 20X1 financial statements at a continuing client's request. the auditor should use the original report date on the reissued report. Dual dating is used when a subsequent event occurs after the date. Auditing Internal Control Over Financial Reporting. #N#AS An Audit of Internal Control Over Financial Reporting That Is Integrated with An Audit of Financial Statements. Audit Procedures in Response to Risks-Nature, Timing, and Extent. #N#AS The Auditor's Responses to the Risks of Material Misstatement.
To reissue the 20X1 auditor's report on financial statements that have been neither restated nor revised, the auditor should use the original report date on the reissued report. Dual dating is used when a subsequent event occurs after the date of the report, but the report has not been issued. The Committee requested the staff to draft a tentative agenda decision taking into account Committee discussions for consideration at a future meeting. At this meeting, the Committee received the draft tentative agenda decision developed by the staff which reflected the previous tentative decisions of the Committee.
Many Committee members expressed concern with the tentative agenda decision wording in that it did not directly respond to the question asked of the Committee.
Dating reissued financial statements
Specifically, these Committee members highlighted that the tentative agenda decision, while reflecting the tentative conclusions of the Committee at its November meeting, did not directly respond to the question of whether dual dating is permitted in IFRS financial statements.
Instead, it appeared to implicitly suggest that since dual dating is outside the scope of IFRSs, an entity may apply a policy decision as to whether dual dating is permitted. As a result, several Committee members suggested the discussion should centre on the relevant discussion in paragraphs 17 and 18 of IAS 10 - that being, the date of authorisation relates to the financial statements as whole, which incorporates the notes, and therefore, there can be only one date that applies.
However, a few other Committee members expressed concern with this conclusion stemming from the broad discussion of the topic at the November meeting. They were concerned that reaching a definitive conclusion on dual dating may conflict with national laws and regulations, although several countered that the Committee is not responsible for dictating the allowability of reissuance.
After a lengthy debate, the Committee expressed support for specifying in the tentative agenda decision that any acts of omission or commission by an entity that are inconsistent with IAS 10 would disallow the entity to assert compliance with IFRS. While not specifically stated in the planned agenda decision, it would then be left to securities regulators to decide if they would require reissued financial statements not in compliance with IFRSs for a specific set of statements.
These words serve as exceptions. Extend subsequent-event procedures and obtain client management representations through the new report date. A note to the financial statements should disclose the new financial information and the financial statement impact, and include a statement that audit procedures applied subsequent to the original audit report date were limited solely to the revised financial information.
Additional management representations should also be obtained in this circumstance.
Principal Financial Statements have been prepared to report the financial position and results of. operations of USAID. The statements have been prepared fr om the books and records of the Agency in accordance with formats prescribed by the Office of Management and Budget (OMB) in OMB Circular. A, Financial Reporting Requirements. Dating of - susanneill.com Auditor's Report However, if an event of the type requiring disclosure only (as discussed in section and) occurs between the date of - susanneill.com auditor's original report and the date of the reissuance of such report, and if the event. This consideration and management's response may reveal that the financial statements or related disclosures require adjustment, the report may need to be withdrawn and reissued, users of the financial statements may need to be notified, and the CPA firm may .
A client may disagree or choose not to revise the financial statements. Even if client management agrees to revise the financial statements, it may not properly inform financial statement users of the situation. Should either of these situations arise, the CPA should take specific steps depending on the circumstance as outlined in AU-C Sectionparagraphs. These steps may include communications to management and those charged with governance, notification to applicable regulatory agencies, and notification to third-party users.
Financial Statements: Run-through of the Statement of Comprehensive Income
Consultation with the firm's legal counsel is also recommended. A subsequent discovery of fact, whether it is embezzlement within a client's organization, the termination of a key contract affecting previously recognized revenue, or another unexpected event, places CPAs in a delicate situation that demands a focused and timely response.
Consider the following risk management techniques to help minimize professional liability risk related to a subsequent discovery of fact:.
Footnotes (AS - Dating of - susanneill.com Auditor's Report):
Accountants performing review services are advised to consult the SSARSs when faced with a subsequent discovery of fact. Daniel J. Continental Casualty Co. This article provides information, rather than advice or opinion.
Jan 23, Date recorded: 22 Jan At its November meeting, the Committee considered a request to clarify the accounting implications of applying IAS 10 Events After the Reporting Period when previously issued financial statements are reissued in connection with an offering document. The request included a specific fact pattern where an entity is required to reissue its previously issued . May 15, This approach is called 'dual dating'. The submitter asked the Interpretations Committee to clarify whether IAS 10 permits only one date of authorisation for issue (ie 'dual dating' is not permitted) when considered within the context of reissuing previously issued financial statements in connection with an offering document. IAS 10 Events after the Reporting Period (May ) Issue Reissuing previously issued Financial Statements The Interpretations Committee was asked to clarify the accounting implications of applying IAS 10 Events after the Reporting Period when previously issued financial statements are reissued in connection with an offering document.
It is accurate to the best of the author's knowledge as of the article date. This article should not be viewed as a substitute for recommendations of a retained professional.
Such consultation is recommended in applying this material in any particular factual situations. Examples are for illustrative purposes only and not intended to establish any standards of care, serve as legal advice, or acknowledge any given factual situation is covered under any CNA insurance policy. The relevant insurance policy provides actual terms, coverages, amounts, conditions, and exclusions for an insured.
An independent auditor may reissue his report on financial statements contained in annual reports filed with the Securities and Exchange Commission or other regulatory agencies or in a document he submits to his client or to others that contains information in addition to the client's basic financial statements subsequent to the date of his original report on the basic financial statements.
ASC Topic is a relatively simple standard that can mean profound changes for organizations with leases. This report examines what makes this standard challenging and describes new ways for CPAs to add value. Toggle search Toggle navigation. Breaking News. What now? Responding to a subsequent discovery of fact By Daniel J.