Presentation is loading. Please wait.

Presentation is loading. Please wait.

Learning Objectives LO1 Prepare reports for review and compilation of unaudited financial statements, given specific facts. LO2 Write a report on a review.

Similar presentations


Presentation on theme: "Learning Objectives LO1 Prepare reports for review and compilation of unaudited financial statements, given specific facts. LO2 Write a report on a review."— Presentation transcript:

1 Learning Objectives LO1 Prepare reports for review and compilation of unaudited financial statements, given specific facts. LO2 Write a report on a review of interim financial information. LO3 Describe the various reports on internal control and their connection with public reporting and reporting to a client’s audit committee.

2 Interim Financial Information
Accounting principles do not require interim financial information as a basic and necessary element of financial statements conforming to GAAP. When interim information is presented it should, however, conform to GAAP. Interim financial statements that might be prepared include buy/sell situations for a business, or to fulfill reporting requirements of regulatory authorities. LO2

3 Interim Financial Information
A common review engagement is the review of interim financial statements. Assess whether accounting principles have been applied on a consistent basis. Ensure statements are not misleading relative to the annual statements. Procedures presume that the accountant has knowledge of the business from the annual audit. LO2

4 Nature of Review Procedures
Review procedures consist mainly of enquiry and analytical procedures. The Handbook, paragraph and ISRE suggests checklists including several procedures. Timing of review procedures: Review procedures should be performed at or near the date of the interim information. LO2

5 Nature of Review Procedures
Extent of review procedures: The accountant needs to acquire a sufficient knowledge of the client’s business, just as if the engagement were a regular audit. Reporting on a review of interim information: Only negative assurance is provided. Interim financial statements should be marked “Unaudited.” LO2


Download ppt "Learning Objectives LO1 Prepare reports for review and compilation of unaudited financial statements, given specific facts. LO2 Write a report on a review."

Similar presentations


Ads by Google