CPA Exam — AUDForming Conclusions and ReportingMedium
An auditor's report on comparative financial statements should generally be dated as of the date of the:
- AEngagement letter.
- BCompletion of fieldwork.
- CClient's year-end.
- DIssuance of the financial statements.
Show answer & explanationAnswer & explanation
Correct answer: B. Completion of fieldwork.
The auditor's report date signifies the completion of the auditor's fieldwork and the date through which the auditor has obtained sufficient appropriate audit evidence.
Why the other options are wrong
- A. The engagement letter date is at the start of the audit, not the end.
- C. The client's year-end is the balance sheet date, not the report date.
- D. The financial statements are issued after the report is dated.
Auditor's Report Date
The date on the auditor's report, which signifies the date the auditor has completed fieldwork and obtained sufficient appropriate audit evidence.
- Marks the end of fieldwork.
- Auditor is responsible for events up to this date.
- Subsequent events occurring after this date generally do not require auditor action unless specifically known.
Memory trick: Audit Dates: Engagement Starts, Fieldwork Ends, Report Dated.