Which of the following is an advantage of an interim report?
I. An interim report provides timely feedback to the audit engagement client.
II. An interim report provides a mechanism for communicating information on red flags promptly while they are being investigated.
III. An interim report provides an opportunity for auditor follow-up of findings before the engagement is completed.
IV. An interim report increases the probability that corrective action will be initiated more quickly.
An interim report has several advantages: it provides timely feedback to the audit engagement client, allowing for immediate response and adjustments. It also provides a mechanism for communicating information on red flags promptly while they are being investigated, which is crucial for addressing issues in real-time. Additionally, it offers an opportunity for auditor follow-up of findings before the engagement is completed, ensuring that any identified issues are addressed quickly and the engagement progresses smoothly. Lastly, an interim report increases the probability that corrective action will be initiated more quickly, as it informs the client of serious findings early, prompting faster resolution. Therefore, all the stated points are valid advantages of an interim report.
What principles are based on this answer? I think an interim report has nothing to do with quick corrective action.
I think the same. Can someone please explain why would interim reporting speed-up a corrective action?
If there are a significant issues need immediately corrective action, we can't wait till issuance of the draft or final report to communicate the case so using interim report is important.
fruad not interim report
Interim report helps in closing the gaps earlier by providing the client with the gap details
bence hepsi
interim report is for 1) to call for an immediate action (e.g. found an open burning near a factory), 2) update a long ongoing engagement to client 3) inform on change of scope.
Why is B wrong?