## SA 560: Key Dates & Post-Report Discoveries (Before FS Are Issued)

### What Is the "Date the FS Are Issued"?

This is the date the auditor's report and audited financial statements are made available to third parties.

Point	Rule
Depends on	Regulatory environment of the entity
May equal	Date of filing with a regulatory authority
Critical constraint	FS issuance date ≥ auditor's report date ≥ date report was provided to entity

> Audited FS cannot be issued without an auditor's report. The issuance date must be at or after the date of the report AND at or after the date the report was handed to the entity.

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### Facts Discovered AFTER Auditor's Report Date but BEFORE FS Are Issued

No general obligation to audit further after signing the report. However, if a fact becomes known that might have caused amendment of the report, the auditor must act.

#### Step 1 — DIA Framework (discuss → determine → inquire)

Step	Action
D – Discuss	Discuss with management (and TCWG if appropriate)
A – Determine	Determine whether the FS need amendment
I – Inquire	Inquire how management intends to address the matter

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#### If Management AMENDS the FS

1. Perform audit procedures on the amendment.

2. Extend procedures to the date of the new auditor's report.

3. Issue a new auditor's report (dated no earlier than approval of amended FS).

The new report must either:

(a) Include an additional date restricted to the amendment (dual-dating), indicating subsequent-events procedures cover only the amendment, or
(b) Include an Emphasis of Matter / Other Matter paragraph conveying the same restriction.

#### Special Cases

Situation	Auditor's Action
Law prohibits amendment	No amended/new report needed
Management refuses to amend – report not yet given to entity	Modify opinion per SA 705, then issue the report
Management refuses to amend – report already given	Notify management + TCWG not to issue FS; if issued anyway, take action to prevent reliance on the report

Worked example

### Example 1

Example 1 – Dual Dating: Auditor signs report on 31 March. Before FS are issued on 15 April, management discovers a major contingent liability that requires a new note. Management amends the FS. The auditor extends procedures to 10 April (amendment approval date) and issues a new report dated "31 March, except for Note 12, which is dated 10 April." This is dual-dating.

### Example 2

Example 2 – Management Refuses, Report Not Yet Issued: Auditor signs on 31 March. On 5 April (before FS issuance), the auditor learns a major customer filed for bankruptcy rendering a receivable irrecoverable. Management refuses to write it down. Since the report has not yet been provided to the entity, the auditor modifies the opinion (qualified or adverse) per SA 705 before delivering it.

### Example 3

Example 3 – Management Refuses, Report Already Issued: The auditor's report was provided to the entity on 1 April. On 10 April (still pre-issuance), the same bankruptcy fact is discovered and management declines to amend. The auditor notifies management and TCWG not to issue the FS without amendment. If they issue anyway, the auditor takes steps (e.g., regulatory notification) to prevent reliance on the report.

⚠️ Common exam mistakes

Confusing 'date of auditor's report' with 'date FS are issued' — these are distinct dates; issuance is always on or after report date.
Thinking the auditor has an obligation to perform further audit work after signing the report — there is NO such general obligation; it only arises if a specific fact becomes known.
Forgetting that dual-dating restricts subsequent-event procedures to the amendment only — the auditor is NOT extending a full audit to the new date.
Applying the same procedure when law prohibits amendment — in that case, no amended or new auditor's report is required.
Mixing up the two management-refusal scenarios: the action differs depending on whether the report has already been provided to the entity.

Bare-Act text Q5 / Para on facts known after auditor's report but before FS issued · SA 560 – Subsequent Events · click to expand

The auditor has no obligation to perform any audit procedures regarding the FS after the date of the auditor's report. However, when, after the date of the auditor's report but before the date the FS are issued, a fact becomes known to the auditor that, had it been known to the auditor at the date of the auditor's report, may have caused the auditor to amend the auditor's report, the auditor shall: (a) Discuss the matter with management and, where appropriate, TCWG; (b) Determine whether the FS need amendment; and (c) Inquire how management intends to address the matter in the FS.

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Date FS Are Issued & Facts Known After Auditor's Report But Before FS Issued

Worked example

⚠️ Common exam mistakes