Immersing in audit

  The International auditing and assurance standards board designed “The International Standard on Auditing for Audits of Financial Statements of Less Complex Entities” which is effective for audits of financial statements of less complex entities for periods Beginning on or after December 15, 2025. The standard is based on the International Standards on Auditing (ISA) and would follow a simplified approach based on risk assessment. The standard will enable auditors to obtain reasonable assurance that financial statements are free from material misstatements, and in an independent audit`s report will be pointed out that the audit is conducted in accordance with the ISA for LCE. The ISA for LCE has the following limitations for using: 1.       Specific classes of entities for which the use of the ISA for LCE is prohibited (described below). 2.       Qualitative characteristics that describe an LCE. Qualitative characteristics relate to business activities, business model & indus

  Interim financial information is financial information that is prepared and presented in accordance with an applicable financial reporting framework and comprises either a complete or a condensed set of financial statements for a period that is shorter than the entity’s financial year. A review is designed to provide limited assurance that the interim financial information is free from material misstatement. Limited assurance engagement is an assurance engagement in which the practitioner reduces engagement risk to a level that is acceptable in the circumstances of the engagement but where that risk is greater than for a reasonable assurance engagement and the practitioner’s conclusion is expressed in a negative form. Review of interim financial information could be required in following situations: ·         Some stock exchanges require listed companies to provide a review of interim financial statements performed by independent auditors. ·         Banks sometimes ask companies