Question

Whether auditors choose to dual date the audit report, or extend the end of fieldwork, _______.

A) Their liability with respect to the financial statements remains the same
B) They must request written representation from management as of the new date of the auditor's report
C) They must request written representation from the internal auditors as of the new date of the auditor's report
D) No further representations should be requested of management.

Answer 1

The correct answer to the question is Option B: They must request written representation from management as of the new date of the auditor's report. This is required whether auditors choose to dual date the audit report or extend the end of fieldwork to include new information relevant to the financial statements.

Step-by-step explanation:

When auditors face certain events after the original date of the audit report, they have options on how to proceed. Should they encounter subsequent events that provide additional evidence relating to the financial statements, they may choose to dual date the audit report or extend the end of fieldwork to include the new information.

If auditors decide to dual date the audit report, they are indicating that the additional procedures relate only to specific subsequent events that occurred between the original report date and the issuance of the report. In this case, the auditor's responsibility for events occurring after the original report date is limited to the specific event referenced. Conversely, if auditors extend the end of their fieldwork, they bring the entire audit up to the new date, which increases the scope of their work and they should, therefore, be aware of all events that could affect the financial statements up to that date.

The correct answer to the question, "Whether auditors choose to dual date the audit report, or extend the end of fieldwork, _______." is Option B: They must request written representation from management as of the new date of the auditor's report. Requesting a written representation from management is an essential step that confirms management's responsibility for the financial statements and disclosures, as well as their awareness of any events that occurred between the date of the auditor's report and the extended audit procedures or issuance of the report.

Therefore, regardless of whether the auditors choose to dual date or extend the date of their fieldwork, it does not change their requirement to get written representations from management; however, it can affect the extent of their liability concerning subsequent events.