The date on auditor's report should not be____________?
Correct answer: C. earlier than the date on which the accounts are approved by the management
- A. the data of AGM
- B. later than the date on which the accounts are approved in board's meeting
- C. earlier than the date on which the accounts are approved by the management
- D. Both A. and B.
Explanation
The auditor’s report cannot be dated before management or the board has approved the financial statements, because the auditor must consider the final approved accounts. The report date is therefore not earlier than the management’s approval date.
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About Auditing
Auditing examines accounting records and financial statements to determine whether they present a reliable and fairly stated position. The subject covers audit objectives, internal controls, audit evidence, materiality, vouching, verification, working papers, auditor independence, audit reports, and the distinction between an audit and accounting or investigation.
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