Report Date of Auditor’s Opinion

In December 2005, the AICPA (American Institute of Certified Public Accountants) issued SAS (Statement on Auditing Standards) #103, Audit Documentation. This statement addresses certain audit practices incorporated during fieldwork. One of the significant changes provided by this new standard is the dating of the audit opinion. Prior to years ending before December 31, 2006, the last day of audit fieldwork was the date the auditors used for the opinion. SAS #103 changes the date of the auditor’s report.

In accordance with U.S. Auditing section 339, paragraph 23 the auditor’s report should not be dated earlier than the date on which the auditor has obtained sufficient appropriate audit evidence to support the opinion. Among other things, sufficient appropriate audit evidence includes evidence that the audit documentation has been reviewed and that the entity’s financial statements, including disclosures, have been prepared and that management has asserted that it has taken responsibility for them.

For examples of sufficient appropriate audit evidence, read on

So instead of having the audit report dated on the last day the auditors are in “the field”, the auditors will date the opinion when:

1. the last piece of significant evidential matter is obtained and

2. management has accepted responsibility for the financials including the disclosures.

This date will typically be closer to the auditor’s release of the statements.

This standard is effective for audits of financial statements for periods ending on or after December 15, 2006 and earlier application is permitted.