Reference no: EM133357618

Question: Consider the following information and determine how Smith & Company's audit report should be dated. Explain your answer:
ABC Bank's balance sheet is dated December 31, 2019.

On January 12, ABC's auditor, Smith & Company begins the audit of the 2019 financial statements with the audit report due on March 15.
On February 15, Smith & Company completes its audit fieldwork and determines that it has sufficient audit evidence that is appropriate to support its opinion.
On February 19, ABC receives notice from a major borrower that it will not be able to repay its loan due to market conditions that have deteriorated over the last six months. ABC will adjust the 2019 financial statements to reflect the write off the material amount of loans from the borrower but will not disclose this write-off in the footnotes.
On February 25, Smith & Company prepares the audit report with an unqualified opinion.
On March 1, Smith & Company submits its audit report to ABC.
On March 2, ABC files its 10-k (annual report) with the SEC including its 2019 financial statements and audit report.
On March 15, Smith and Company learn that ABC has been forced to close all of its branch locations due to the COVID pandemic. This will have a material effect on the Bank's financial performance in 2020.