Page 162 - Internal Auditing Standards

Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities Volume 1—Core Concepts

CONSIDER POINT

It is in the interests of both auditor and the client to complete the work necessary to issue the auditor’s
report on a timely basis. This will minimize the extent of work involved to identify, assess, and possibly
disclose subsequent events in the fi nancial statements.

13.2 Dual Dating

Subsequent events that become known after the date of the auditor’s report often result in additional audit
work being required that affects account balances, accounting estimates, provisions, and other disclosures in

the financial statements. In such situations, a new auditor’s report would be issued that would not be dated
earlier than the date of approval of the amended fi nancial statements.

However, for certain subsequent events, the additional audit work required can be restricted solely to the

amendment of the financial statements as described in the relevant note to the financial statements. In
these situations (assuming local laws or regulations permit), the original date of the auditor’s report would be
retained, but a new date is added (dual dating) to inform readers that the auditor’s procedures subsequent to
the original date were restricted to the subsequent amendment.

An example of a situation involving dual dating:
• The original auditor’s report was dated September 15, 20XX;

• On October 22, 20XX, the entity announced the sale of a major part of its business. A new note (Y)
describing the event was prepared by management for inclusion in the financial statements; and

• The audit work performed on the details of note Y was completed on November 3, 20XX.

The revised wording for dual dating the auditor’s report would be as follows:

“September 15, 20XX except as to Note Y, which is as of November 3, 20XX.”

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