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

When an auditor reissues a report without restating prior-year financial statements, which report date should be used?

1. The release date of the reissued report

2. The original report date

3. The current-period auditor's report date

4. The date of the request from the client

The correct answer is: The original report date

When an auditor reissues a report without restating prior-year financial statements, the original report date should be used. This approach maintains continuity and ensures that users of the financial statements understand the context in which the original audit was performed. The original report date reflects the conditions and circumstances at the time of the initial audit, including the auditor’s assessments and findings. Using the original report date signifies that the auditor has not changed their opinion on the prior year's financial statements and that those financial statements are still valid as of that original report date. This practice also reinforces the idea that the financial information was appropriately audited as of that time, and subsequent events that may affect the financial statements are noted or disclosed separately, where necessary. The other options do not align with the best practices in auditing. For instance, using the release date of the reissued report or the current-period auditor's report date could mislead users regarding the timeline and the validity of the audit performed on prior-year statements. Additionally, utilizing the date of the request from the client would not accurately represent the auditor's opinion or the status of the financial information being reissued.