Review of Interim Financial Information What are some common procedures that the auditor will complete when performing a review of interim financial information?
Interim financial information is reported in quarterly financial statements. The SEC requires publicly owned companies to (1) file quarterly financial information with the SEC on Form 10-Q within 40 to 45 days (depending on the company size) after the end of each of the first three quarters of the fiscal year and provide their shareholders with quarterly reports and (2) include certain quarterly information in the annual reports to the SEC (Form 10-K) and in the annual reports to shareholders. The SEC requires publicly owned corporations to have their quarterly financial information reviewed by their independent auditors before it is issued, but does not require that the auditor's review report be included with the quarterly information, although many companies do include the auditor's report. The term auditor is used in this discussion not because the auditor is performing an audit but because this section concerns the review of interim financial information performed by the auditor of the annual financial statements of the company.
The AICPA's AU-C Section 930 "Interim Financial Information" and the IAASB's ISRE (paragraphs 43-63) contain the relevant professional guidance on this topic.
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Answer the following statement true (T) or false (F)