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Microlesson · 5-min read

Date Financial Statements Are Issued and Its Significance under SA 560

## Date the Financial Statements Are Issued (SA 560)

### Definition

"Date the financial statements are issued" is the date on which the auditor's report and audited financial statements are made available to third parties.

### Dependence on Regulatory Environment

The exact date depends on the entity's regulatory framework. In some jurisdictions, it is the date the statements are filed with a regulatory authority (e.g., Registrar of Companies).

### Critical Sequencing Rule

The date financial statements are issued must be:

1. At or after the date of the auditor's report, AND

2. At or after the date the auditor's report is provided to the entity.

Rationale: Audited financial statements cannot be issued without an auditor's report. Therefore, the issuance date logically follows both the signing of the report and its delivery to the entity.

Yes — the issuance date can be later than the date the auditor's report is provided to the entity.

### Why This Matters: Subsequent Events (SA 560)

SA 560 distinguishes two subsequent event periods:

PeriodAuditor's Obligation
Year-end → Report dateActive duty to look for events
Report date → Issuance dateReact if a fact becomes known that would have caused an amendment

The "date financial statements are issued" is the outer boundary of the subsequent events window. After issuance, SA 560 procedures no longer apply.

Worked example

### Example 1

An auditor signs the audit report on 18 August 2024 and delivers it to the company on 20 August 2024. The company files annual returns (including financial statements) with the Registrar of Companies on 5 September 2024. The 'date financial statements are issued' is 5 September 2024 — it is later than both the report date (18 Aug) and the date the report was provided to the entity (20 Aug). If the auditor discovers a material fact on 1 September 2024 that would have caused a report amendment, SA 560 procedures apply because statements have not yet been issued to third parties.

⚠️ Common exam mistakes

  • Equating 'date of auditor's report' with 'date financial statements are issued' — the report date is when the auditor signs; issuance is when statements reach third parties, which is typically later.
  • Not knowing that the issuance date must be at or after BOTH the report date AND the date the report was delivered to the entity — both conditions must be satisfied.
  • Confusing the two subsequent events periods under SA 560: (a) between year-end and report date (active duty to search for events) and (b) between report date and issuance date (reactive duty if a fact becomes known).
  • Assuming the issuance date equals the date the auditor delivers the report to management — the report delivery to the entity is a precondition, not the issuance date itself.
Bare-Act text Subsequent Events · SA 560 · click to expand
'Date the financial statements are issued' reflects the date on which the auditor's report and audited financial statements are made available to third parties. Since audited financial statements cannot be issued without an auditor's report, the date that the audited financial statements are issued must not only be at or later than the date of the auditor's report but must also be at or later than the date the auditor's report is provided to the entity.
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