Are quarterly financial statements audited for public companies?
No, quarterly financial statements that are filed with the SEC are not audited. The external audit team would perform a review of the quarterly financial statements, which means that limited assurance is provided. Since the review engagement is for an issuer (public company), then the review is performed in accordance with SSAE standards.
Basically, the audit team would perform inquiry with management, analytical procedures, and tie-out the financial statements to the company’s internal financial statements. No substantive testing or internal control testing is performed during a review for quarterly financial statements.
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