Interim Financial Information

Question 1

Define Interim Financial Information:

Answer 1

Financial information prepared and presented in accordance with applicable finance reporting framework that comprises either a complete or condensed set of financial statements covering a period less than a full year

Question 2

When accepting the engagement, the auditor should…:

Answer 2

1) Determine if the financial reporting framework is acceptable
2) Should agree upon the terms of the engagement- obtain a written engagement letter

Question 3

What are the basis for conclusions in interim financial statement reviews?

Answer 3

1) Analytical procedures
2) Lots of inquiries
* Obtain written representation (document the verbal response)
* Representation letter should have the same date as audit review report

Question 4

What is the title of the report for a review of interim financial statements?

Answer 4

Independent Auditor Review Report

Question 5

What is the structure of the independent auditors review report?

Answer 5

1) Report of the Financial statements- states the financial statements reviewed and dates
2) Management responsibility
3) Auditor Responsibility- state that this is not an audit but a review
4) Conclusion- negative assurance so there is NOOO “in our opinion)

Question 6

What are the documentation requirements for a review?

Answer 6

Adequate so that an experienced auditor would be able to follow exactly what was done to perform the audit.

The conclusions reached.

Significant judgements made