ExpertMedium1 markMultiple Choice
CPA · Question 74 · Area 4: Reporting
An auditor is performing a review of interim financial information for a public company. Which of the following procedures is REQUIRED?
An auditor is performing a review of interim financial information for a public company. Which of the following procedures is REQUIRED?
Answer options:
A.
Confirmation of material accounts receivable.
B.
Observation of inventory counts.
C.
Inquiry of management regarding significant changes in internal control.
D.
Testing the operating effectiveness of controls.
How to approach this question
Interim Review = Inquiry + Analytics. Look for the Inquiry option.
Full Answer
C.Inquiry of management regarding significant changes in internal control.✓ Correct
A review of interim financial information consists primarily of inquiries and analytical procedures. The auditor should inquire about significant changes in internal control since the most recent audit.
Common mistakes
Selecting audit procedures (Confirmation/Observation) for a review engagement.
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