The annual financial statements of a publicly held company have been audited, and its interim financial statements have been reviewed. Which of the following is true about the application of professional standards to this review?

Question

Quizplus · Accepted Answer

Choice "A" is correct. A review of the interim financial information of a publicly held company is conducted in accordance with PCAOB standards, and it is these standards which should be referenced in the auditor's review report. (Note, however, that the PCAOB has adopted, at least initially, generally accepted auditing standards in this area.) Choices "B" and "C" are incorrect. Statements on Standards for Accounting and Review Services apply to reviews of the financial statements of nonissuers. Choice "D" is incorrect. A review of the interim financial information of a publicly held company is conducted in accordance with PCAOB standards.

The Annual Financial Statements of a Publicly Held Company Have