Page 612 - Auditing Standards

As of December 15, 2017

28 If the auditor's report on the preceding year-end financial statements was other than unqualified, referred
to other auditors, or included an explanatory paragraph because of a going-concern matter or an inconsistency
in the application of accounting principles, the second paragraph of the illustrative report in paragraph .39 should
be appropriately modified.

29 See AS 1205.

[30] [Footnote deleted.]

31 APB Opinion No. 28, paragraph 32, states that "there is a presumption that users of summarized interim
financial data will have read the latest published annual report, including the financial disclosures required by
generally accepted accounting principles and management's commentary concerning the annual financial
results, and that the summarized interim data will be viewed in that context." See footnote 18 of this section for
additional disclosure requirements.

32 Such disclosures include those set forth in AS 2415.10. If the accountant determines that disclosure about

the entity's possible inability to continue as a going concern is inadequate, a departure from generally accepted
accounting principles exists.

33 In considering what actions, if any, may be appropriate in these circumstances, the accountant should

consider consulting his or her legal counsel.

34 However, an accountant would not be precluded from supporting his or her conclusions by other means in
addition to the documentation.

Footnote (Appendix A - Analytical Procedures the Accountant May Consider Performing When
Conducting a Review of Interim Financial Information):

35 The accountant should exercise caution when comparing and evaluating current interim financial
information with budgets, forecasts, or other anticipated results because of the inherent lack of precision in
estimating the future and susceptibility of such information to manipulation and misstatement by management to
reflect desired interim results.

Footnote (Appendix B - Unusual or Complex Situations to Be Considered by the Accountant When
Conducting a Review of Interim Financial Information):

36 The accountant may wish to refer to the guidance in paragraphs .05 and .06 of AS 2501, Auditing

Accounting Estimates.

Footnotes (Appendix C - Illustrative Management Representation Letters for a Review of Interim

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