After the balance sheet date but prior to the audit report date,the client decides to acquire Bargain Company to obtain a significant increase in revenues.The auditor's report would probably include the statement: "except for the acquisition of Bargain Company...".

Question

Quizplus · Accepted Answer

The auditor's report focuses on the financial statements' fair presentation as of the balance sheet date. Events occurring after the balance sheet date but before the audit report date, such as acquiring another company, do not alter the financial statements of the period being audited and therefore would not lead to an "except for" qualification in the auditor's report.

After the Balance Sheet Date but Prior to the Audit