In the latter instance, the independent auditor's responsibility for subsequent events extends to the later report date and, accordingly, the procedures outlined in section 560.12 generally should be extended to that date.
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.
In the case of a predecessor auditor consenting to reuse a previous report, additional procedures are always required.Under ordinary conditions, the auditor should date his or her report as of the date of completion of fieldwork.When the adjustment is made without disclosure of the event, the report ordinarily should be dated in accordance with paragraph .01.However, if the financial statements are adjusted and disclosure of the event is made, or if no adjustment is made and the auditor qualifies his or her opinion, the procedures set forth in paragraph .05 should be followed.If disclosure of the event is made, either in a note or in the auditor's report, the auditor would date the report as set forth in the following paragraph.
[As amended, effective September 2002, by Statement on Auditing Standards No. For audits of fiscal years beginning before December 15, 2010, click here.] The independent auditor has two methods for dating the report when a subsequent event disclosed in the financial statements occurs after the auditor has obtained sufficient appropriate evidence on which to base his or her opinion, but before the issuance of the related financial statements.
Assume the following facts: The original audit report is dated March 18, 2013.
The company entered into a definitive agreement to discontinue a material line of business on March 22, 2013. Which dating convention yields the least responsibility for the auditor?
In such cases, the independent auditor has no responsibility to make further investigation or inquiry as to events which may have occurred during the period between the original report date and the date of the release of additional reports.
However, see section 711 as to an auditor's responsibility when his report is included in a registration statement filed under the Securities Act of 1933 and see section 508.70–.73, for the predecessor auditor's responsibility when reissuing or consenting to the reuse of a report previously issued on the financial statements of a prior period.
If the auditor dates the report as of the date of the subsequent event rather than dual dating the report he or she should extend the subsequent events review to that date.