An interim audit
A) consists only of substantive testing of account balances.
B) has the objective of verifying financial statement figures to render a professional opinion of the financial statements.
C) has the objective of establishing the degree to which the internal control system can be relied upon.
D) None of these answers is correct.

Question

Quizplus · Accepted Answer

An interim audit has the objective of establishing the degree to which the internal control system can be relied upon. It is conducted during the year, usually at the middle or the end of the year, to provide an early warning of problems and help the auditor plan the year-end audit. The interim audit includes risk assessment, testing of controls, and substantive testing of account balances. The objective is not to render a professional opinion of the financial statements, which is only done at the end of the year-end audit.

An Interim Audit