The books for the 12 months ending December 31, 2012, are still open.All years prior to January 1, 2012, are closed: Robson Corporation shows two comparative years, 20, on its statement of retained earnings.In case a subsequent event of the type requiring adjustment of the financial statements (as discussed in section 560.03) occurs after the date of the independent auditor's report but before the issuance of the related financial statements, and the event comes to the attention of the auditor, the financial statements should be adjusted or the auditor should qualify his or her opinion.When the adjustment is made without disclosure of the event, the report ordinarily should be dated in accordance with paragraph .01.
Under ordinary conditions, the auditor should date his or her report as of the date of completion of fieldwork.
By Maire Loughran As soon as an error is found, it must be corrected.
How you correct the error under GAAP depends on the type of error, the number of financial periods the error affects, how the error affects financial statement presentation, and whether the error is counterbalancing.
However, if the financial statements are adjusted and disclosure of the event is made, or if no adjustment is made and the auditor qualifies his or her opinion, the procedures set forth in paragraph .05 should be followed.
[As amended, effective September 2002, by Statement on Auditing Standards No.