Final answer:
The concept of dual dating in audit reports indicates that the auditor's responsibility extends to the later date only for disclosures related to specific subsequent events and does not apply to all areas of the financial statements. Thus, the statement is false.
Step-by-step explanation:
The question addresses the concept of dual dating in an audit report, which is a practice used by auditors in certain circumstances where a subsequent event occurs after the original date of the auditor's report, but before the issuance of the financial statements. Dual dating indicates that the auditor's responsibility for the financial statements extends to the later date only for the disclosure related to the specific event that occurred after the original report date, not for all areas of the financial statements. Therefore, the statement that dual dating extends the auditors' liability for disclosure through the later date for all areas of the financial statements is False.
When dual dating is applied, it affects only the specific area pertaining to the subsequent event that has been recognized or disclosed in the financial statements. The auditors' responsibility for other parts of the financial statements remains fixed at the original date of the audit report. Therefore, the extension of responsibility is limited and does not encompass the entirety of the financial statements.