Ask Joey ™ a Question

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.


You might also be interested in...

  • What are the filing deadlines for public companies?

    The filing deadline depends on what type of filer the public company is, which is based on the company’s enterprise value (i.e. market value of outstanding common stock). As you can see in the visual below, public companies are required to issue 10-K (annual report) and 10-Q’s (quarterly reporting). Its also important to understand that […]