Final answer:
An auditor may 'dual date' an audit report to include a later date for events occurring after the financial statements' completion but before the audit report issuance, limiting liability only to the specific event.
Step-by-step explanation:
An auditor's decision concerning whether or not to "dual date" the audit report is a significant one. This term refers to the practice of using two dates on the audit report: the original date of the financial statements' completion and a later date for a subsequent event that occurred after the financial statements were issued but before the audit report was finalized. This practice is used when an event occurs between those two dates that affects the financial statements and the auditor has gathered sufficient evidence on the event's disclosures. The auditor might dual date the report to limit the responsibility to the period after the original audit report date only for the effect of the specific subsequent event. This decision should be made judiciously, as it can have significant implications for the auditor's liability and the organization's financial reporting.