29 Abdul Jabbar CPA audited XYZs 123108 financial statements

29. Abdul Jabbar, CPA audited XYZ\'s 12/31/08 financial statements. The audit field work, which included an adequate analysis of events subsequent to the balance sheet date, was concluded on 2/28/09. The financial statements are to be released to stockholders on 3/15/09. The CPA learns of a material lawsuit on 3/10/09 relating to an event that occurred on 3/5/09, and the client properly discloses it in footnote G to the statements. The audit report should be dated a. 3/15/09 b. 2/28/09 c. 3/5/09 d. 2/28/09, except for footnote G as to which the date is 3/5/09. e. either c or d

Solution

Correct answer is c. 3/5/09

The Audit report should be dated as of the date the Auditors have sufficient evidence. In the present case, the event occured on 3/5/09 and Audit report should be dated 3/5/09.