Question

The date the auditor grants the client permission to use the audit report in connection with the financial statements is the:

1) Last day of significant field work.
2) Report cutoff date.
3) Report release date.
4) Representation date.

Answer 1

The correct answer is option 3) Report release date.

Step-by-step explanation:

The correct answer is option 3) Report release date.

The date the auditor grants the client permission to use the audit report in connection with the financial statements is known as the report release date. This is the date when the auditor deems all necessary procedures to have been performed and the financial statements are ready for public use and distribution.

For example, after completing the fieldwork and reviewing the financial statements, the auditor may issue the audit report with a specific date mentioned as the report release date. This date gives the client permission to use the audit report in their financial statements.