In order to perform a review of interim financial information,the auditor must
A)have audited or be in the process of auditing the entity's latest financial statements.
B)tested the entity's internal controls to determine that financial information is reliable.
C)sent confirmation to third-parties concerning significant related-party transactions.
D)established sufficient criteria to form an opinion on the fair presentation of the financial information.

Question

Quizplus · Accepted Answer

According to AU-C Section 930, Interim Financial Information, the auditor must have audited or be in the process of auditing the entity's latest financial statements in order to perform a review of interim financial information. This is because the auditor must have an understanding of the entity's accounting policies and internal controls in order to perform the review. Therefore, choice A is the best answer. Choices B, C, and D are not required in order to perform a review of interim financial information.

In Order to Perform a Review of Interim Financial Information,the