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Which of the following is not a required procedure in an engagement to review the interim financial information of a publicly held entity?
Suggested Answer: B
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Choice 'b' is correct. A report on internal control related matters noted in an audit should not state that there are no significant deficiencies in internal control, since this statement might erroneously imply that the auditor searched for such conditions.
Choice 'a' is incorrect. The auditor is permitted to state that no material weaknesses were identified during the audit. Typically this occurs in reports submitted to governmental authorities.
Choice 'c' is incorrect. The auditor may suggest that corrective follow-up action should be taken due to the relative significance of material weakness discovered.
Choice 'd' is incorrect. The auditor's report may state that his or her consideration of internal control would not necessarily disclose all significant deficiencies that exist.
29 comments · newest first
LA
Lavonda
11 months ago
C is definitely required, no doubt about that!
DE
Delisa
11 months ago
I’m not sure about B either, feels like a stretch.
VI
Vinnie
11 months ago
Wait, isn't inquiring about fraud super important?
BE
Bernardo
11 months ago
Totally agree, A seems unnecessary for a review.
LO
Lorean
12 months ago
I think option A is not required.
LO
Louann
12 months ago
Inquiring about fraud seems important, but I wonder if it's strictly required for interim reviews. I need to double-check that one!
RE
Rex
12 months ago
I feel like obtaining evidence that the interim financial information reconciles with the accounting records is pretty standard, but I could be mixing it up with other procedures.
RO
Rolland
1 year ago
I remember practicing a question similar to this, and I think comparing revenue data is definitely part of the review process, so that might not be the right answer.
NI
Nina
1 year ago
I think option A might be required since going concern is a big deal, but I'm not entirely sure.
NA
Natalya
1 year ago
Hmm, I'm a bit unsure about this one. I know early adopters are important, but I'm not sure exactly how they are considered opinion leaders. I'll have to review my notes on the diffusion of innovations model.
ED
Edna
1 year ago
I'm a bit confused by this question. The different syntax for different technologies part is throwing me off. I'll need to re-read the question and the answer choices a few times to make sure I understand what's being asked.
RU
Rutha
1 year ago
I'm a bit uncertain about whether the default gateway setup should be routed or transparent. I might be overthinking it!
LO
Louisa
1 year ago
Wait, so we're not even supposed to check if the company might go bankrupt? That's like having a doctor do a checkup without checking your vital signs. Sounds like a recipe for disaster to me.
IL
Ilona
1 year ago
C) Obtaining evidence that the interim financial information reconciles with the accounting records.
JO
Jovita
1 year ago
B) Comparing disaggregated revenue data for the current interim period with that of comparable prior periods.
LA
Lakeesha
1 year ago
A) Obtaining corroborating evidence about the entity's ability to continue as a going concern.
TA
Tawanna
1 year ago
Ah, I see. So they just want us to make sure the numbers add up, but don't really care about the underlying financial health of the company. Interesting approach.
JE
Jerry
1 year ago
User 2: Yeah, that's one of the required procedures in the engagement.
EL
Eleonora
1 year ago
User 1: I think we need to compare revenue data for the current period with past periods.
HU
Hubert
1 year ago
Hmm, I'm not sure about this one. Shouldn't we be checking for fraud and other financial shenanigans? I'd rather play it safe and go with option D.
KA
Karon
2 years ago
Really? I would have thought that was an important step. Oh well, I guess the reviewers don't care if the company is about to go under as long as the numbers look good on paper.
FR
Francesco
2 years ago
I think option A is the correct answer. Obtaining evidence about the entity's ability to continue as a going concern is not a required procedure in an interim review engagement.
TA
Tasia
1 year ago
I think option A is not necessary for reviewing interim financial information.
QU
Queenie
1 year ago
I agree, option A is not a required procedure in an interim review engagement.
FE
Felicidad
1 year ago
I believe option A is not the correct answer.
LE
Lettie
1 year ago
I think option A is the correct answer.
CH
Christiane
2 years ago
Hmm, I see your point. Let's discuss further to figure out the correct answer.
DE
Delpha
2 years ago
I disagree, I believe the answer is D) Inquiring of management about their knowledge of fraud or suspected fraud.
CH
Christiane
2 years ago
I think the answer is A) Obtaining corroborating evidence about the entity's ability to continue as a going concern.