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Quarterly Audit

WHAT is quarterly audit?

The quarterly audit report is called an interim review report.

Quarterly review is an “external audit” conducted “quarterly”, i.e., every three months, to meet the mandatory requirements as per the government or similar authority.

The same provisions apply for a half yearly review. Monthly audit is rarely required.

It is largely similar in scope to the Statutory or Annual Audit However, where the annual audit is carried out under the International Standards on Auditing (ISA), the quarterly or interim audit is carried out under “International Standards on Review Engagements 2400, Review of Interim Financial Information performed by the Independent Auditor of the Entity”. The International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA code) is applicable for all audit engagements.

Secondly, while the annual financial statements are prepared under International Financial Reporting Standards (IFRS), the quarterly or interim financial statements are prepared under “International Accounting Standard 34 - 'Interim Financial Reporting' (IAS 34)”. The International Accounting Standards (IAS) are applicable for maintaining all types of accounts.

WHO NEEDS quarterly audit?

  1. Public limited companies
  2. Entities governed by special statutes
    For example:
    • Banks
    • Money exchanges
    • Share brokers
    • Insurance companies
    • Financial market intermediaries
  3. Businesses that would like to improve their compliance while availing facilities / loans - for the not-so-heavily borrowed entities, banks may still seek half yearly audited financial statements
  4. Entities that need to adhere to some international regulations
  5. Businesses that have been advised by the Federal Tax Authority to submit an audit report
  6. Business disputes of a financial nature being heard in a court of law or by any arbitrator or authority where the presiding officer or panel has asked for audited financial statements to be submitted
  7. Managements that generally follow better business practices and corporate governance

WHY is quarterly audit required?

Entities that require a quarterly audit are usually in highly regulated businesses. They rarely ask this question to an auditor.

If you genuinely have this doubt, you may get in touch with one of our auditors (click here) who will be in a better position to address your queries after studying the constitution of your entity, your trial balance and other pertinent details.

Monthly audits are rarely statutory requirements.

WHEN is quarterly audit required?

Within a month of the end of the quarter, Read More

Unlike annual audit, which can be completed in three months or sometimes up to six months from the end of the financial year, the quarterly audit needs to be completed within a month of the end of the quarter, as per almost all regulations that make it mandatory.

Since it is more of a regulatory audit or a management audit, it is imperative that the information placed before its reader is fresh. Information more than a month old is seldom useful for decision-making or monitoring, as a result of which, this audit is usually commenced before the first week of the consecutive month is over and is completed within the first fortnight, unless there is a lacunae in fulfilling the information required by the auditor.

The same timeframe is expected for a half-yearly and monthly audit.

WHY should I choose Prudential Auditing as my auditors?

Usually, the statutory auditor and the auditor of quarterly or half yearly financial statements is the same. However, if you are seeking our services, then we would request you to visit this paragraph in the annual audit service section on our website.

WHERE is this service available?

Where the requirement is statutory, the service is provided in UAE.

Where the requirement is for management jurisprudence, the service is provided across the globe.

WHO will audit my quarterly financial statements?

How much does it COST to carry out a quarterly audit?

It costs almost the same as an annual audit to carry out an interim audit.

Although the responsibility of an auditor of the interim financial statements is slightly lesser than that of the auditor of the annual financial statements and the extent of information verified is slightly less, since the report contains 3 columns for the first quarter and 4 columns for the second and third quarter, the overall auditing and reporting effort is not reduced in any way.

You may wish to click here – the cost of an annual audit page – to know how much a quarterly or interim audit would cost.

You may also click here for the annual audit fee estimator and provide the details of your quarterly results here. Where the amounts exceed AED 20 million, substitute with USD figures and apply that currency to the audit fee too.

Monthly audits have more of internal review procedures and are economical by about 25% of the annual audits.

In the interest of the comfort of our viewers, we will shortly update this paragraph with pertinent information specifically designed to address quarterly or interim audits.

What service ENHANCEMENTS or DISCOUNTS are available?

You may click here for enhancements and discounts on the annual audit fees.

However, the exceptional low activity 66% discount and the charity deserving 80% discount are not applicable for this service.

In most cases, businesses that need quarterly audit also do not fall under the criteria that can satisfy the economy package – no frills 50% discount – so this usually becomes a premium service or a super premium service only. However, since interim audits are generally carried out in off-season times, we will ultimately offer a slight – about 15% – discount on the fee estimated by our calculator.

Monthly audit fees are about 25% lower in general.

In the interest of the comfort of our viewers, we will shortly update this paragraph with pertinent information specifically designed to address quarterly or interim audits.

How much TIME does it need to carry out a quarterly or interim audit?

Due to the nature of the engagement, these audits are usually completed within a week. The engagement rarely extends beyond a fortnight.

WHAT INFORMATION is required to begin and complete a quarterly audit?

Usually, the same information that is required for an annual audit is required for an interim audit. To view a simple single page list of the documents required, click here.

Till we enter the relevant details in this section, specifically designed for the interim audit of financial statements, we recommend you click here to refer the information required for annual audits.

However, from the detailed list, ignore the following:

At the same time, while statutory audit also considers these, the interim audit focuses more on these aspects:

What is the AUDIT PROCESS?

The process for the audit of interim financial statements is almost the same as that for the statutory audit of annual financial statements. You may click here to view the process for annual audit till we design content specifically for interim audit.

How will my audited financial statements LOOK LIKE?

We will upload sample audited interim financial statements shortly.

How is the audit report of Prudential Auditing DIFFERENT or BETTER from other audit reports?

While we design content specifically for this service, you may click here to refer the same for annual audits.

What DISCLOSURES will the audited interim financial statements have?

The audited interim financial statements are almost similar in form and content to the annual audited financial statements. You may click here to refer the disclosures in an annual audit report.

There are subtle differences, which we will include when we present more information here, specifically suited for interim audits.

The main difference is that the audited interim financial statements have 3 columns of information for the previous year, current quarter and the current period from beginning of the year till the end of the reporting quarter.

Why do auditors ask SO MANY QUESTIONS?

  1. The auditor's product is your audit report; your audit report is your representative that goes to any third party; the quality of that audit report casts its first and lasting impression on the reader; the auditor asks you information to enhance the quality of this report; this ultimately benefits you - you should not accept a report that discloses incomplete information because it affects the quality of your report
  2. The auditor assures the reader of your report that the information provided by you in that report is fair; the reader takes decisions on the basis of this assurance; if the reader suffers a loss he is free to sue the auditor for a false assurance; the auditor protects himself from accidental liability of approving incorrect information - you are paying him to do a job, let him do it properly for your benefit

How does one RECOGNISE GOOD QUALITY financial statements (colloquially referred as the audit report)?

You may click here to refer to annual audits till we upload the information tailored to suit audited interim financial statements on this page.

What does the auditor do with YOUR INFORMATION?

You may click here to refer to annual audits till we upload the information tailored to suit audited interim financial statements on this page.

You have MORE DOUBTS about interim audits?

  1. Send an email to dhawalgn@prudentialauditing.com or prasannah@prudentialauditing.com about your doubts and we will get back to you at the earliest.
  2. Call up +971-55-222 4657 or +971-55-991 3324 for a quicker direct conversation on phone.
  3. Send an email to any of our auditors on our team or call any of them on their phone numbers - their details are given in the people section of our website.

SEEK our Audit Service

  1. Send an email to dhawalgn@prudentialauditing.com or prasannah@prudentialauditing.com about your doubts and we will get back to you at the earliest.
  2. Call up +971-55-222 4657 or +971-55-991 3324 for a quicker direct conversation on phone.
  3. Send an email to any of our auditors on our team or call any of them on their phone numbers - their details are given in the people section of our website.