Page 629 - Auditing Standards

As of December 15, 2017

assurance only when they have conducted a review of the interim financial information in accordance with AS
4105. The accountants may (a) state in the comfort letter that they have performed the procedures identified
in AS 4105 for a review of interim financial information (see paragraphs 4a and 5a of example A [paragraph

.64] or (b) if the accountants have issued a report on the review, they may mention that fact in the comfort
letter. If it is mentioned in the comfort letter, the accountants should attach the review report to the letter
unless the review report is already included (incorporated by reference) in the registration statement. When

the accountants have not conducted a review in accordance with AS 4105, the accountants may not
comment in the form of negative assurance and are, therefore, limited to reporting procedures performed and
findings obtained (see example O [paragraph .64]).

.38 The letter should specifically identify any unaudited condensed interim financial information and
should state that the accountants have not audited the condensed interim financial information in accordance
with the standards of the PCAOB and do not express an opinion concerning such information. An appropriate

manner of making this clear is shown in paragraph 3 of example A [paragraph .64].

Capsule Financial Information

.39 In some registration statements, the information shown in the audited financial statements or
unaudited condensed interim financial information is supplemented by unaudited summarized interim
information for subsequent periods (commonly called "capsule financial information"). This capsule financial
information (either in narrative or tabular form) often is provided for the most recent interim period and for the

corresponding period of the prior year. With regard to selected capsule financial information, the accountants
—

a. May give negative assurance with regard to conformity with generally accepted accounting principles
and may refer to whether the dollar amounts were determined on a basis substantially consistent
with that of the corresponding amounts in the audited financial statements if (1) the selected capsule
financial information is presented in accordance with the minimum disclosure requirements of

Accounting Principles Board (APB) Opinion No. 28, paragraph 30 [AC section I73.146], and (2) the
accountants have performed an AS 4105 review of the financial statements underlying the capsule

financial information. If those conditions have not been met, the accountants are limited to reporting
procedures performed and findings obtained.

b. May give negative assurance as to whether the dollar amounts were determined on a basis

substantially consistent with that of the corresponding amounts in the audited financial statements if
the selected capsule financial information is more limited than the minimum disclosures described in
APB Opinion 28, paragraph 30 (see example L [paragraph .64]), as long as the accountants have
performed an AS 4105 review of the financial statements underlying the capsule financial

information. If an AS 4105 review has not been performed, the accountants are limited to reporting
procedures performed and findings obtained.

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