Video: Interim Reviews

In this lesson, the concept of interim reviews is explored, which involves conducting reviews of financial statements before the period under review is complete. The reasons for interim reviews, as well as their benefits and potential risks, are discussed. By getting a head start on the engagement, the audit process can potentially become more efficient. The lesson also delves into what should be considered when planning interim testing, including assessing incremental audit risk and its relation to tolerable misstatement levels. Additionally, the conditions under which interim review reports can be issued are clarified, ensuring proper scope of inquiry and analytical procedures.