Proposed model for reviewing the degree of compliance with IAS 34 in accordance with the requirements of ISRE 2410

Abstract

       This study aims to present a proposed model for examining compliance with International Accounting Standard IAS 34 related to interim financial reports, in light of the requirements of the International Standard on Review of Interim Reports (ISRE 2410). The research relies on a comparative analysis of the requirements of the two standards to identify similarities in requirements as a prelude to designing the audit and review procedures required by external auditors. Based on the above, the first practical aspect was conducted by designing an examination form to determine the level of compliance with the requirements of IAS 34 and designing audit opinions and reviewing the requirements for preparing interim reports. The second practical aspect was the design of a questionnaire containing three sections related to ISA 34 and ISAE 2410. The primary conclusions indicate that a proposed model for assessing compliance with IAS 34, grounded in international auditing standards, improves the accuracy and transparency of interim financial reports while diminishing the variance in audit and review methodologies between external auditors and economic entities. Interim financial reports are not subject to external audit and review, as is the case with annual financial reports. Rather, the review is limited to a limited scope that is not binding on the units, and an opinion is not expressed in the audit report. Attention should be paid to including all detailed information in interim reports, as is the case with annual reports. The most prominent recommendations were to subject interim financial reports to audit and review, as well as to express a neutral technical opinion on the results obtained. It is necessary to develop specialized training programs for external auditors to implement interim review procedures in accordance with ISRE 2410 using the proposed model.