Dear professor,
The hot and cold reviews can be performed by the same person?
if not then who perform the cold reviews?
P.S.- something very silly, but is there any reason, as to why they pre and post issuance reviews are named as hot and cold reviews respectively?
Ask the Tutor ACCA AA
pre and post-issuance reviews
5y ago#1The purpose of pre- and post- reviews are different:
Pre .... focuses on the audit opinion before the financial statements are published
Post ... is more concerned with reviewing the conduct of audits.
Pre may be required - e.g. EQCR for a listed entity is a specific example (Chapter 24 s.5 of the notes).
Many audit firms have no listed clients - but as part of a system of QC should have reviews. Smaller firms might operate as a network or consortium which would facilitate peer reviews and sharing of best practice.
"Hot" and "cold" just conveys timing/urgency - "hot" (like "hot off the press") is urgent because the financial statements and auditor's report thereon can't be published until the review is completed - "cold" (like "cold case") is a review after the event.
You are hands down the best Professor!
5y ago#3Thank you for your kind words but all the tutors here give a huge amount of their time to these forums - I just don't have any students posting to AAA at the moment so I spend more time here on AA.
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