Section General - ASRE 2410 - Review of an Interim Financial Report Performed by the Independent Auditor of the Entity - April 2006 - General

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General

Discuss terms and scope of the engagement with the engagement team.
Enquire whether all financial information is recorded:

(a) completely;

(b) promptly; and

Enquire about the accounting policies and consider whether:

(a) they comply with the applicable financial reporting framework;

(b) they have been applied appropriately; and

(c) they have been applied consistently and, if not, consider whether disclosure has been made of any changes in the accounting policies.

Enquire about the policies and procedures to assess asset impairment and any consequential estimation of recoverable amount.
Enquire about the policies and procedures to determine the fair value of financial assets and financial liabilities.
Enquire if actions taken at meetings of shareholders or those charged with governance affect the interim financial report have been appropriately reflected therein.
Enquire about plans to dispose of major assets or business segments.
Obtain the interim financial report and discuss it with management and those charged with governance.
Consider the adequacy of disclosure in the interim financial report and its suitability as to classification and presentation.
Compare the outcomes shown in the current period interim financial report with those shown in financial reports for comparable prior periods and, if available, with budgets and forecasts.
Obtain explanations from management for any unusual fluctuations or inconsistencies in the interim financial report.