An auditor’s decision concerning whether or not to “dual date” the audit report is based upon the auditor’s willingness to
A. Permit inclusion of a footnote captioned: event (unaudited) subsequent to the date of the auditor’s report.
B. Assume responsibility for events subsequent to the issuance of the auditor’s report.
C. Extend auditing procedures.
D. Accept responsibility for subsequent events.
Answer:C
C is corrent. If the auditor becomes aware of a subsequent event that has occurred after the completion of fieldwork, but before the issuance of the report (which should be disclosed), the auditor may dual date the report. Additionally, the auditor may date the report as of the date of the subsequent event and extend the procedures for review of subsequent events to that date. Thus, the decision whether or not to dual date the report is based upon the auditor’s willingness to extend audit procedures.
A is incorrect because such known subsequent events are to be audited.
B is incorrect because the auditor, with or without dual dating, need not assume responsibility for events subsequent to the issuance of the auditor’s report.
D is incorrect since the auditor must accept responsibility for the known subsequent event regardless of whether dual dating is used.