What is a review of interim financial information?
Interim financial report means a financial report containing either a complete set of financial statements or a set of condensed financial statements for an interim period. Governments, securities regulators, stock exchanges, and accountancy bodies often require entities whose debt or equity securities are publicly traded to publish interim financial reports. A review, in contrast to an audit, is not designed to obtain reasonable assurance that the interim financial information is free from material misstatement. The auditor’s conclusion is based on the auditor obtaining limited assurance that the interim financial information is free from material misstatement. A review consists of making inquiries and applying analytical and other review procedures. The objective of an engagement to review interim financial information is to enable the auditor to express a conclusion whether, on the basis of the review, anything has come to the auditor’s attention that causes the auditor to...