AUD Subsequent Events: When Do You Dual-Date the Report?
FAR asks how the statements account for the event. AUD asks what the auditor is responsible for doing about it.
Subsequent-event procedures
The auditor performs procedures covering the applicable period through the audit report date, such as reading interim statements and minutes and making relevant inquiries.
Event discovered before release
The auditor evaluates the event's effect on financial statements, disclosures, audit evidence, and report dating.
Dual dating
Dual dating can limit the extension of auditor responsibility to the specific later event rather than extending responsibility for all subsequent events through the later date.
Later single date
Using a later single report date can extend the auditor's subsequent-events responsibility more broadly through that date.
The takeaway
Dual dating isolates the later event. A later single date can extend the responsibility period more broadly.
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FAQ
Is dual dating mandatory?
No.
Why dual-date?
It can limit the extension of responsibility to the specified event.
Is this the same as FAR subsequent-event accounting?
No. The topics are related but test different responsibilities.