Which of the following circumstances requires modification of the accountant's report on a review of interim financial information of publicly held entity?
$\begin{array} { c c c }
& \text {Inconsistent Accounting } & \
& \text { Principle Application}&\text { Inadequate Disclosure}\\end{array}$
A- $\begin{array} { c c c } \quad\quad\quad\text { Yes } &\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad \text { Yes } \\end{array}$
B- $\begin{array} { c c c }\quad\quad\quad \text { Yes } &\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad \text { No } \\end{array}$
C- $\begin{array} { c c c } \quad\quad\quad\text { No } & \quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text {Yes } \\end{array}$
D- $\begin{array} { c c c }\quad\quad\quad \text { No } &\quad\quad\quad\quad \quad\quad\quad\quad\quad\quad\text { No }
\end{array}$

A)Option A
B)Option B
C)Option C
D)Option D

Question

Which of the following circumstances requires modification of the accountant's report on a review of interim financial information of publicly held entity?  
$\begin{array} { c c c } 
& \text {Inconsistent Accounting } &  \
& \text { Principle Application}&\text { Inadequate Disclosure}\\end{array}$ 
A- $\begin{array} { c c c }  \quad\quad\quad\text { Yes } &\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad \text { Yes } \\end{array}$ 
B-  $\begin{array} { c c c }\quad\quad\quad \text { Yes } &\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad \text {  No } \\end{array}$
C-  $\begin{array} { c c c } \quad\quad\quad\text {  No } & \quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text {Yes } \\end{array}$
D-   $\begin{array} { c c c }\quad\quad\quad \text { No } &\quad\quad\quad\quad \quad\quad\quad\quad\quad\quad\text {  No }
\end{array}$

A)Option A
B)Option B
C)Option C
D)Option D

Quizplus · Accepted Answer

According to the International Standards on Review Engagements (ISRE), if the interim financial information includes a material misstatement, the accountant should modify the review report to include a paragraph stating that the review does not provide a basis for the auditor to obtain reasonable assurance about whether the interim financial information is free from material misstatement. Therefore, option C requires modification of the accountant's report. Options A, B, and D do not require modification of the report.