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Part 2 SA 2410
QNO Updating Understanding of Company New Course – (SM23)
2410.100 TITANIUM CNO-- SRE 2410.040
CA. Aditya Jain is auditor of a listed company. He is also required to carry out quarterly review of financial
statements of company in terms of regulatory requirements. He is already well-versed with business of
company and has deep understanding of the company. Discuss, any five procedures, by which he can
update his understanding of the company for carrying out quarterly.
Answer Updating Understanding for Interim Review: In planning a review of interim financial information, the
auditor updates this understanding. The auditor also obtains a sufficient understanding of internal control
as it relates to the preparation of interim financial information as it may differ from internal control as it
relates to annual financial information.
Updating Understanding.
1. Review of Past Records and Information:
- Reviewing documentation from the preceding year's audit and reviews of prior interim period(s)
of the current year and corresponding interim period(s) of the prior year
- Reading the latest annual and prior period interim financial data.
- Considering significant risks from the prior year's audit.
- Assessing corrected and uncorrected misstatements from the prior year.
- Evaluating continuing significant financial accounting matters.
2. Assessment and Consideration of Current Year's Information:
- Performing audit procedures for the current year's financial statements.
- Assessing materiality for interim financial information.
- Evaluating results of internal audits and management's subsequent actions.
3. Inquiries and Communication with Management:
- Inquiring about management's assessment of fraud risks.
- Discussing changes in the entity's business activities.
- Discussing significant changes in internal control and their impact on interim financial information
preparation.
- Understanding the process and reliability of the interim financial information preparation.
QNO Subsequent Events New Course – (SM23)
2410.200 TITANIUM CNO-- SRE 2410.060
CA. Pankaj Chaturvedi has issued a review report dated 28.7.2022 for financial results of a company for
quarter ending 30.6.2022. Describe his responsibility, if any, for events occurring from 1.7.2022 till date of
review report in accordance with SRE 2410.
Answer Subsequent Events (SA 560)
Up to date of review Report: The auditor should inquire whether management has identified all events up
to the date of the review report that may require adjustment or disclosure in the interim financial
information.
After the date of review report: It is not necessary for the auditor to perform other procedures to identify
events occurring after the date of the review report.
QNO Material Adjustment in Financial Statement New Course – (SM23)
2410.300 TITANIUM CNO -- SRE 2410.160
CA. Seerat is conducting review of the quarterly financial information of a company of which she is also
auditor. She believes that it is necessary to make a material adjustment to the quarterly financial
information for it to be prepared, in all material respects, in accordance with the applicable financial
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