An auditor is performing a review of interim financial information for an issuer under PCAOB standards. Which of the following procedures is the auditor REQUIRED to perform?

Answer options:

Send bank confirmations to all banks.

Observe the physical inventory count.

Inquire of management regarding significant changes in internal control.

Perform a search for unrecorded liabilities.

How to approach this question

Interim Review = Analytics + Inquiry. Look for the Inquiry option.

Full Answer

C.Inquire of management regarding significant changes in internal control.✓ Correct

Inquire of management regarding significant changes in internal control.

PCAOB AS 4105 requires the auditor to inquire of management about significant changes in internal control over financial reporting as part of an interim review.

Common mistakes

Selecting audit procedures for a review engagement.

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