[Anonymous]

I have a confusion in regards to beckers A1 question CPA-03154.

Sufficient appr audit evidence obt on Mar 6 Y2

Sub event req adj to Y1 FS occured on April 10 Y2 and came to auditors attention on April 24 Y2

If adj is made w/o disclosure of event, auditors report should be dates

a) March 6 Y2 – correct answer

b) April 10 Y2

c) April 24 Y2

d) Using dual dating

My question. If an event has occurred after audit report date why would it require an adj to FS if the report is not dual dated

[KassiusKlay]

I think what its getting at is that the evidence was acquired on March 6th, before the audit report date. You date the report on the last day appropriate evidence has been gathered. If the subsequent event and its related evidence came to the auditors attention AFTER the report date then you either double date or extend the date of the entire report to that date (which involves the auditor taking responsibility for everything upto that date). Not sure I understand your question, but hopefully this helps a little. sorry : )

Form is temporary, class is permanent.

Audit 4/19/12 - 77
BEC 5/31/12 - 75
FAR 8/30/12

[LittleMoe]

It's been over a month since I finished audit but I will take a shot at it.

If the subs event affected the prior year (i.e.something not incl in inventory that should have been), the FS would have to be adjusted or they are not correct. Because it came to the auditor's attention, he/she would have to make necessary adjustments/disclosures. However, the auditor would not date the report any later unless they had performed tests up to the later date. The FS would still need to be adjusted to reflect the correction of the known error for the auditor to be able to stand by the auditor's report.

AUD 4/12/12 79
FAR 5/29/12 76
REG 8/2/12 82
BEC 8/30/12 72 Retake 10/18/12 76!!! DONE!!!!
ExamMatrix, Wiley Books, NINJA notes and audio
LICENSED ALABAMA CPA 11/30/12

[Author]

Replies