MCQ AUD 2.4

Question 1

What are the requirements of review of interim financial statements of publicly held entity

Answer 1

As part of a review accountant is required to compile disaggregated revenue data for the current interim period with that of comparable prior periods
As a part of review accountant is required to obtain evidence that the interim financial information reconciles with that of accounting records.
As a part of review the accountant is inquired of management about their knowledge of suspected fraud or allegations of fraud. When an entity is required by the SEC to file a quarterly report the SEC also requires that an independent accountant performs a review in accordance with PCAOB standards. Provides a negative assurance

Question 2

The objective of a review of interim financial statements of a public entity is to provide an accountant with a basis of reporting whether

Answer 2

material modifications should be made to conform with GAAP.

Question 3

For interim reporting

Answer 3

there is no standards

Question 4

When conducting a review of interim financial information of a publicly held entity the following audit procedures are not performed

Answer 4

Verification of changes in key account balances
Inspection of open purchase order file
Performance of cut-off tests for cash receipts and disbursements

Question 5

which of the following is not a difference between a review of a public entity’s interim financial information and a review of unaudited financial statements of a non-issuer

Answer 5

Neither type of review requires inquiry of clients attorney regarding litigation claims and assessments

Question 6

steps in a review

Answer 6

establishing an understanding of the client is first followed by learning/obtaining a sufficient understanding of the entity and its environment including internal