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hi guys, what is the difference between a hot review and a cold review and when should they be carried out? should they be documented??…on a lighter note, is Lisa Weaver still the paper P7 examiner?? thanx
Hi
A hot review is a review that takes place while an audit is in progress. This is usually undertaken for high risk clients.
A cold review is a review completed after the audit has completed and can highlight development points for future reviews.
Not sure about Lisa Weaver!
Ross
Of equal relevance, why the interest in the identity of the examiner? ACCA took the step last December of saying that the identity of the ACCA examiners is no longer to be made public knowledge.
Why on Earth would you need to know anyway?
The purpose of a hot review is to ensure that the proposed audit opinion is justified and appropriate. It’s of particular importance in situations where there are contentious matters in the client’s affairs, accounting treatments or where it’s a new client, or a public interest client, or even where there were major concerns in prior years. In addition, the audits of clients in the financial sectors are coming under close scrutiny at the moment and I imagine that the audits of banks, building societies and other financial institutions are carrying out hot reviews of these clients as a standard procedure nowadays
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