When making a review of interim financial information, the auditor's work consists primarily of:
A) confirming and verifying account balances at the interim date.
B) studying and evaluating limited amounts of documentation supporting the interim financial information.
C) scanning and reviewing client- prepared, internal financial statements.
D) making inquiries and performing analytical procedures concerning significant accounting matters.

Question

Quizplus · Accepted Answer

When making a review of interim financial information, the auditor's work consists primarily of making inquiries and performing analytical procedures concerning significant accounting matters. This is because the scope of a review engagement is limited compared to an audit engagement, and therefore, a review does not require the same level of testing as an audit. The auditor's primary objective is to determine whether any material modifications should be made to the interim financial information in order for it to be in accordance with the applicable financial reporting framework.

When Making a Review of Interim Financial Information, the Auditor's