Review of Interim Financial Information Flashcards
in review engagements, accountants should…
- obtain knowledge of the client’s industry: accounting principles and practices generally used
- obtain knowledge of the client, its business and its particular accounting policies and practices
- making inquiries of client personnel, including questions about actions of the BOD
- design and perform analytical procedures (comparing current year to prior years)
- obtain written representations from management in the form of a representation letter
- read the F/S and consider whether they conform with GAAP
review _________ the study or evaluation of I/C or perform tests of details
DOES NOT require
reviews of interim financial information under SAS require accountant to
obtain an understanding of the client’s I/C
review of interim F/S of a public company…
performed under PCAOB
review of interim F/S for a nonpublic company…
performed under GAAS IF
-the entity’s latest annual F/S have been audited
-auditor has either:
1. been engaged to audit the entity’s current year F/S
2. audited the entity’s latest annual F/S and expects to be engaged to audit the current year F/S
-the same financial reporting framework used to prepare the annual F/S is used for the interim financial information
a CPAs name should be excluded from any client publication that contains interim F/S unless…
the publication also includes the review report
in an examination or review, public companies are required to provide…
a set of disclosures referred to as management discussion and analysis (MD&A)
a review provides ________ that nothing came to the accountants attention to indicate the MD&A information is in error
negative assurance
auditors opinion must state whether the condensed data is…
fairly stated in all material respects in relation to the complete F/S
