When the auditor becomes aware of an event that occurs after the audit report date,but before the issuance of the audit report to the client and the event is disclosed in the footnotes,the auditor would date the report as if this fact had been known at year-end.

Question

Quizplus · Accepted Answer

The auditor would not change the date of the audit report to reflect the date of the event or the date the fact became known. Instead, the auditor would either add an emphasis-of-matter paragraph to the report to refer to the note disclosing the event, or if the event requires adjustment of the financial statements, ensure that the adjustment is made and disclosed appropriately without changing the original audit report date.

When the Auditor Becomes Aware of an Event That Occurs