CPA Exam — AUDForming Conclusions and ReportingMedium
An auditor's report on comparative financial statements should generally be dated as of the date of the auditor's completion of fieldwork for the:
- ADate of the board of directors' approval of the financial statements.
- BLatest financial statements presented.
- CDate the financial statements are issued to the public.
- DEarliest financial statements presented.
Show answer & explanationAnswer & explanation
Correct answer: B. Latest financial statements presented.
The auditor's report date signifies the date on which the auditor has obtained sufficient appropriate audit evidence on which to base the auditor's opinion. For comparative financial statements, this means the fieldwork for the most recent period presented must be complete.
Why the other options are wrong
- A. While board approval is important, the auditor's report date is tied to the completion of audit fieldwork, not managerial approval.
- C. The issuance date is typically after the auditor's report date, as the report must be finalized before the statements are released.
- D. Dating the report as of the earliest statements would imply that the auditor has not completed work on subsequent periods.
Auditor's Report Date
The date on the auditor's report indicates the date on which the auditor has obtained sufficient appropriate audit evidence on which to base the auditor's opinion.
- Signifies completion of fieldwork.
- For comparative statements, it's the latest period's fieldwork completion.
- Auditor is responsible for events up to this date.
Memory trick: The report date is the 'finish line' of the fieldwork for the most 'current' statements.