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QNO Why “Inquiry” and “Analytical procedures New Course – (SM23)
2400.300 TITANIUM CNO-- SRE 2400.120
Discuss why “inquiry” is important as an audit procedure in an engagement to review financial statements.
Answer Why “Inquiry” and “Analytical procedures” are important in Review?
Management Intent:
1A. Evidence for management intent: Evidence obtained through inquiry is often the principal source of
evidence about management intent. However, information to support management’s intent may be limited.
1B. Corroborate evidence obtained: Understanding management’s past history, reasons for actions, and
ability to pursue actions may corroborate evidence obtained through inquiry.
1C. Professional Scepticism for evaluation: Application of professional scepticism in evaluating responses
from management is crucial to determine potential material misstatements in the financial statements.
2. Understanding the Entity and its environment: Performing inquiry procedures assists in obtaining or
updating the practitioner’s understanding of the entity and its environment, helping identify areas of
potential material misstatements in the financial statements.
QNO Date of report New Course – (SM23)
2400.400 TITANIUM CNO-- SRE 2400.200
What is significance of “date of report” in a review report?
Date of the Practitioner’s Report: Dated no earlier than the date on which sufficient appropriate evidence
has been obtained, including confirmation that all statements have been prepared and responsibility has
been asserted.
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