Question

The date of the audit opinion of Upton Industries, Inc. reads: March 7, 2014, except for Note D, as to which the date is March 12, 2014. What is this an example of?

a. Improper reporting.

b. A GAAP violation.

c. Dual dating.

d. A contingent event.

Answer 1

The dual dates on the audit opinion for Upton Industries, Inc. signify dual dating, which is when an auditor’s report carries two dates due to events occurring between the original report and the issuance of financial statements.

Step-by-step explanation:

The date of the audit opinion for Upton Industries, Inc. which states March 7, 2014, except for Note D, as to which the date is March 12, 2014, is an example of dual dating. Dual dating occurs when the auditor's report has two dates: the original date of the auditor's report and a later date for an event that took place after the original report date but before the issuance of the financial statements. This practice is allowed in order to extend the auditor's responsibility for subsequent events to the later date for a specific part of the financial statements, in this case, Note D. It is neither improper reporting nor a GAAP violation, and it does not directly pertain to a contingent event.