[Anonymous]

When reissuing the audited period’s financial statements for a client in order to correct an error what should change (if anything) in the auditor’s report? Does the report date change or does an extra paragraph need to be added for clarification? I’m pretty sure the report date stays the same signifying that the auditor’s responsibility for subsequent events still falls within the same timeline as before, but I’m unsure if the correction needs to be disclosed.

The company being audited is not public. Any thoughts?

[Adam]

You would add in the notes and disclosures section what was changed and why it was changed. You should also add a supplementary paragraph stating you are reissuing the financial statements and what has changed.

Then reason behind reports and disclosures is to MAKE SURE investors and financiers are well aware of the statement of financial position and if there was a material error in previously issued statements you need to clearly bring that to there attention.

You would also disclose the original date of issuance and then the new date as of re issuance.

This has nothing to do with a subsequent event, you would not reissue for that, those would be disclosed and then picked up on the next issued statement in the period occured.

[Joetse]

DORCS is the mnemonic from Becker – GAASP is the mnemonic from Becker for emphasis of matter paragraphs added, when there is a change of opinion due to change of opinion due to error in accounting principle (departure from GAAP). Departures from GAAP need justification – so you would need an explanatory paragraph describing the departure from GAAP, justifying what's changed, and statement saying the opinion has changed.

[Author]

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