ISRE 2410

Pick a listed company https://financials.psx.com.pk
Look at the dates of quarterly reports …. most recent are quarter ended 2021-03-31 …
If a company’s year end is 2021-03-31, the “full annual” financial statements will follow.
If a company’s year end is 2021-06-30, there will be an another quarterly report, after which the “full annual” financial statements will follow.

Imagine you are an investor in one of these companies – what is the purpose of quarterly/half-yearly reports? I hope you can appreciate that it would make no sense to prepare interim accounts after the full a/cs – also there’s a clue in the word interim – so after the reporting date the auditor wouldn’t do an interim audit.

Suppose a y/e of 31 December – most companies i.e. unlisted ones – except for very large unlisted ones – will not have draft financial statements for the y/e until January – because they won’t extract a trial balance until 31 December. Listed and large unlisted companies might prepare draft financial statements for the y/e in December because they have more sophisticated accounting systems. Or might prepare draft financial statements for the 11 months to November for the auditor to plan the final audit.

If you are talking about a listed company then audit procedures will have been carried out during the year on the interim financial statements to 31 March, 30 June and 30 September. For any company, the final audit would take account of audit work during the current year would include the results of the interim audit(s), if any.

@Chartac – please refer to the General Posting Guidelines on the forum rules https://opentuition.com/forums/forum-rules and my request to you here on August 10 https://opentuition.com/topic/advise-4

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