What does report release date mean on the CPA exam?
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Report release date. The date the auditor grants the entity permission to use the report. It starts the 60-day limit for assembling the final audit file. Different from the date of the auditor's report, which is when sufficient appropriate evidence was obtained.
Defined against AU-C 230.06, .16.
Worked example
An auditor finishes gathering sufficient appropriate evidence on a private company's audit on March 6, the same day management approves the statements and signs its representation letter, and dates the report that day. After its own internal sign-off, on March 20 the firm authorizes the company to use the report, delivering the signed copy that afternoon.
What is the report release date, and by when must the final audit file be assembled?
- March 6 is the date of the report: the day the auditor had enough evidence to support the opinion.
- March 20 is the report release date: the day the auditor granted the entity permission to use the report.
- The final file must be assembled no later than 60 days after the release date. Counting from March 20, eleven days take it to March 31, thirty more to April 30, and nineteen more to May 19.
Answer: The report release date is March 20, and the audit file must be assembled by May 19. After that, nothing may be deleted, and anything added is documented with who added it, when and why.
The trap: Counting the 60 days from the report date of March 6, which gives May 5. The two dates mean different things: one marks when the evidence was complete, the other when the client could start using the report.
Based on AU-C 230.06; AU-C 230.16.
Which CPA exam sections use report release date?
Report release date appears in the AUD section of the CPA exam.
Related terms
- balance sheet date: The last day of the reporting period.
- written representations: Statements the auditor requires from management to confirm matters or support other evidence.
- measurement date: The date at which an amount is fixed for accounting.
- auditor's report: The document carrying the opinion, with its sections in a fixed order.
- audit evidence: Everything the auditor uses to reach a conclusion, including the accounting records and anything corroborating them.
- management's specialist: An expert management uses to help prepare the financial statements, such as an actuary or an appraiser.