Objective of an Engagement to Review an Objective of an Engagement to Review an Interim Financial Report

Objective of an Engagement to Review an Interim Financial Report

14 The objective of an engagement to review an interim financial report is to enable the auditor to express a conclusion whether, on the basis of the review, anything has come to the auditor’s attention that causes the auditor to believe that the interim financial report is not prepared, in all material respects, in accordance with an applicable financial reporting framework. Under paragraph 19 of this Auditing Standard, the auditor needs to make enquiries, and performs analytical and other review procedures in order to reduce to a limited level the risk of expressing an inappropriate conclusion when the interim financial report is materially misstated.

15 The objective of a review of an interim financial report differs significantly from that of an audit conducted in accordance with Auditing Standards. A review of an interim financial report does not provide a basis for expressing an opinion whether the financial report gives a true and fair view, or is presented fairly, in all material respects, in accordance with the applicable financial reporting framework.

16 A review, in contrast to an audit, is not designed to obtain reasonable assurance that the interim financial report is free from material misstatement. A review consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review may bring significant matters affecting the interim financial report to the auditor’s attention, but it does not provide all of the evidence that would be required in an audit.