The Orange Corporation was audited for the year ended December 31. The audit was completed on January 25; prior to the release of the report, auditors learned of a two-for-one stock split on February 1. If dual dating is used, what are the proper dates for the auditors' reports?
A)December 31 and January 25
B)January 25 and February 1
C)January 25 and February 15
D)February 1 and February 15

Question

Quizplus · Accepted Answer

Dual dating in the auditor's report refers to using two dates: the original date of the auditor's report and the date of a subsequent event that occurred after the completion of fieldwork but before issuance of the report. In this case, the original report date is January 25 (the completion of the audit), and the date of the subsequent event (the stock split) is February 1. Dual dating is used to limit the auditor's responsibility for events occurring between these two dates.

The Orange Corporation Was Audited for the Year Ended December