Auditing and Attestation- Certified Public Accountant (CPA) Practice Exam -

When an auditor issues a dual-dated report, what is the scope of the auditor's responsibility for subsequent events occurring after the original report date?

1. Limited to the specific event referenced.

2. Extended to all events occurring after the report date.

3. Limited to the period covered by the financial statements.

4. Extended to subsequent events occurring through the later date.

The correct answer is: Limited to the specific event referenced.

The correct answer pertains to the auditor's focus when issuing a dual-dated report, specifically noting that the auditor's responsibility for subsequent events is limited to the specific event referenced in the report. In a dual-dated report, the original report date reflects the completion of audit procedures up to that point. However, when a dual date is used, it signifies that the auditor has updated their report only for particular subsequent events that occurred after the original report date. This approach allows the auditor to clarify their responsibility concerning only those referenced events, while the remainder of the financial statements remains under the original report date. Consequently, the auditor does not extend their responsibility to all events or even the entire subsequent event period, which is why options that suggest a broader scope, such as extending to all events or through the later date, do not accurately capture the auditor's limited focus established by the dual-dating process. Thus, option A encapsulates the correct interpretation of an auditor's responsibility in this scenario.