Guide to Using International Standards on Auditing in - IFAC

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<strong>Guide</strong> <strong>to</strong> <strong>Using</strong> <strong>International</strong> <strong>Standards</strong> on Auditing in the Audits of Small- and Medium-Sized Entities Volume 1—Core Concepts
CONSIDER POINT
It is in the interests of both audi<strong>to</strong>r and the client <strong>to</strong> complete the work necessary <strong>to</strong> issue the audi<strong>to</strong>r’s
report on a timely basis. This will minimize the extent of work involved <strong>to</strong> identify, assess, and possibly
disclose subsequent events in the financial statements.
13.2 Dual Dating
Subsequent events that become known after the date of the audi<strong>to</strong>r’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 audi<strong>to</strong>r’s report would be issued that would not be dated
earlier than the date of approval of the amended financial statements.
However, for certain subsequent events, the additional audit work required can be restricted solely <strong>to</strong> the
amendment of the financial statements as described in the relevant note <strong>to</strong> the financial statements. In
these situations (assuming local laws or regulations permit), the original date of the audi<strong>to</strong>r’s report would be
retained, but a new date is added (dual dating) <strong>to</strong> inform readers that the audi<strong>to</strong>r’s procedures subsequent <strong>to</strong>
the original date were restricted <strong>to</strong> the subsequent amendment.
An example of a situation involving dual dating:
• The original audi<strong>to</strong>r’s report was dated September 15, 20XX;
• On Oc<strong>to</strong>ber 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 audi<strong>to</strong>r’s report would be as follows:
“September 15, 20XX except as <strong>to</strong> Note Y, which is as of November 3, 20XX.”