Interim Financial Information

Question 1

When reviewing interm f/s it is important to go over the minutes for meetings

Answer 1

true

Question 2

This would be included on the representation letter of review of interim financial info

Answer 2

“We understand that a review consists principally of performing analytical procedures and making inquiries about the interim financial information.”

Question 3

If there is an independent accountant reivewing interim f/s then this statement should be written:

Answer 3

Accountant’s review report is not a part of the registration statement within the meaning of the Securities Act of 1933.

Question 4

The accountant must be independent for a review engagement in interim financial information, since a review results in a form of assurance known as “negative assurance.”

Answer 4

true

Question 5

AICPA Professional Standards specifically identify that the accountant should consider the results of any audit procedures performed with respect to the current year’s financial statements as a procedure that would be applicable to planning a review of interim financial information with respect to updating the auditor’s knowledge of the entity’s business and its internal control.

Answer 5

true

Question 6

what is the objective in reviewing interim financial statements?

Answer 6

report whether there should be modifications made to conform with the framework