19 -- Related Reporting Topics

19 -- Related Reporting Topics - CPA AUDITING - STUDY UNIT...

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CPA AUDITING - STUDY UNIT 19 Related Reporting Topics: Core Concepts A. A review of interim financial information provides the accountant with a basis for reporting whether material modifications should be made for such information to conform with GAAP (i.e., negative assurance ). A review does not entail testing of accounting records, obtaining corroborating evidence, or applying certain other auditing procedures. The procedures ordinarily are limited to inquiries and analytical procedures. B. Letters for underwriters. Accountants audit financial statements and schedules contained in registration statements filed with the SEC. They also may issue letters for underwriters and certain other requesting parties. Comfort letters are not required and are not filed with the SEC, but underwriters request them because they may wish to perform a reasonable investigation of financial and accounting data not expertized (covered by a report of independent accountants, who consent to be named as experts, based on an audit) as a legal defense. The assistance provided in a comfort letter is limited to, at most, negative assurance .
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This note was uploaded on 08/29/2010 for the course CBEAM AUD taught by Professor Gleim during the Spring '10 term at De La Salle Lipa.

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19 -- Related Reporting Topics - CPA AUDITING - STUDY UNIT...

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