SAP 47 covered the subject matter of this. On other hand SAS 29, created a difference in responsibilities for types of reissued reports. If the client is furnished with additional copies of a previously issued report, the auditor has no responsibility to perform any procedures prior to reprinting the report unless the auditor has become aware of the need to adjust or make disclosure in the financial statements.
In the case of a predecessor auditor consenting to reuse a previous report, additional procedures are always required. This post discusses those parts of the SAP that told the auditor how to date the report in the following circumstances: Some related topic [i.
Ordinary Conditions Under ordinary conditions, the auditor should date his or her report as of the date of completion of fieldwork. The auditor does not have to make inquiries or apply other auditing procedures after the date of his or her report under ordinary conditions. However, additional procedures might be required. Subsequent Events Requiring Adjustment of Financial Statements — Some events that require adjustment might be made without disclosure, but some events require additional disclosure to be understood.
Financial statements adjusted, no disclosure. Financial statements adjusted, disclosure. When the adjustment is made with disclosure of the event, the auditor should dual date the report or date it as of the date of the event.
Financial statements not adjusted. If the financial statements are not adjusted, the auditor should qualify his or her opinion or, if appropriate, express an adverse opinion. Subsequent Events Requiring Disclosure — Some subsequent events only require disclosure of information in the notes to the financial statements. In either circumstance, the auditor should dual date his or her report or date it as of the event.
If the subsequent event is not disclosed, the auditor should qualify the opinion, or if appropriate, express an adverse opinion. In these circumstances, the auditor should either dual date the report or date it as of the date of the event. Its purpose is to determine whether the financial statements being reported on require adjustment or additional disclosures.
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. Reissuance Of Report When the auditor reissues the report and uses the original report date, he or she does not have to investigate or inquire about events affecting the financial statements reported on that may have occurred between the original date and the reissuance date.
If the auditor is a continuing auditor, the report has to be updated. If the auditor is a predecessor auditor and the client is reusing the report, additional procedures are required, including a requirement to obtain an updating representation letter from management and a representation letter from the successor auditor.
Events Requiring Adjustment or Disclosure — The auditor may be aware of an event that occurred between the original report date and the reissuance date that affects the financial statements reported on. This event may require disclosure to prevent the financial statements from being misleading. Events occurring between the original report date and the reissuance date do not require adjustment of the financial statements unless the adjustment results in the correction of an error. When the auditor reissues the report and the financial statements have been adjusted or events have been disclosed in the notes, he or she should dual date the report or date it as of the date of the event responsible for the adjustment or the disclosure.
The effect of the event may cause the auditor to express an opinion different from the one he or she originally expressed. An example of the heading to use for this type of note follows: Unusual Conditions Under ordinary conditions, the auditor has no responsibility to make any inquiry or carry out any procedures for the period after the date of his or her report. An exception might arise if the audit report is reissued as explained previously. An exception might also arise in either of the following circumstances.
Subsequent Discovery of Facts — If, subsequent to the date of the report, the auditor becomes aware of facts that may have existed at that date which might have affected the report, additional procedures are required. Filing under the Act — If the financial statements subsequently are incorporated in a filing under the Securities Act of , additional procedures are required. Determining The Date Of Completion Of Fieldwork There is no authoritative pronouncement that provides guidance on how to determine the date of completion of fieldwork.
The auditor and the client may arrange for a formal closing conference to review the financial statements. The conclusion of this conference may be considered the date of completion of the fieldwork.
Additional advice on issues concerning dating of the audit report is presented in the Techniques for Application section of Section During this period, the auditor might review the audit documentation a final time to make certain there are no open items, put the audit documentation in a form suitable to be filed, and prepare the final audit report and financial statements. During this period, the auditor is not required to apply any procedures unless information about subsequent events comes to the attention of the auditor.
If the delay is unusually long, it may be advisable to extend the subsequent events review and redate the report. Ordinarily, this is the date that the auditor and the client agree on the form and content of the financial statements. Sometimes, the date is a matter of judgment see Techniques for Application. It is the date up to which the auditor is responsible for keeping informed about events affecting the financial statements being reported on.
Reuse by the client requires that certain procedures be performed before the auditor can consent. An auditor also may dual date a reissued audit report because of an event that occurs after issuance of the original audit report.