In the audit of Longwind Ltd.'s January 31 financial statements,subsequent to the approval of the financial statements by the board of directors on March 11,2016 and prior to the issuance of the audit report,the auditor became aware of a lawsuit that should have been disclosed but was not.The auditor was able to conduct separate work related to the material lawsuit and note 17 related to this item was added.The additional work and change to the statement was completed April 2,2016.How should the audit report be dated?
A)March 11.
B)March 11,except for Note 17,April 2.
C)April 2.
D)An audit report cannot be issued until additional fieldwork is completed on fully revised and reissued financial statements.

Question

Quizplus · Accepted Answer

The audit report should be dated March 11, except for Note 17, which should be dated April 2. This is in accordance with the subsequent events guidance in auditing standards, which allows for the inclusion of a note related to subsequent events after the date of the financial statements, as long as it does not affect the financial statements as a whole. The auditor's report should reflect the date of completion of the audit work, which was March 11, but also indicate the update related to the lawsuit in Note 17, which was completed on April 2.

In the Audit of Longwind Ltd