The International Audit and Assurance Standards Board (IAASB) is an independent global standard-setting board that was originally formed in 1978 by the International Federation of Accountants (IFAC) and transitioned to the International Foundation for Ethics and Audit in 2023. The IAASB “serves the public interest by setting high-quality international standards for auditing (ISAs), quality management, review, other assurance, and related services. These standards are used in more than 130 jurisdictions to enhance the quality and uniformity of audit and assurance engagements and strengthen public confidence in markets and economies.” The August 2025 issue of the Audit & Accounting Alert covered the new ISAs on going concern and fraud.
In May 2026, the IAASB released an Exposure Draft, Review of Interim Financial Information Performed by the Independent Auditor of the Entity (ISRE 2410). More than twenty years have passed since this review standard has had a major update. The overall review pronouncement, International Standard on Review Engagements (ISRE) 2400 (Revised), Engagements to Review Historical Financial Statements, was last issued in September 2012, and applies to all practitioners, while ISRE 2410 focuses specifically to cases where the interim review is performed by the entity’s annual auditor, who already has previous knowledge of the entity as a result of the annual audit.
After presenting the objectives of obtaining limited assurance and reporting on the interim financial information along with pertinent definitions, ISRE 2410 discusses the requirements:
1. Conduct of an Interim Review Engagement in accordance with this ISRE
- Requires compliance with all relevant ISRE 2410 requirements
2. Relevant ethical requirements
- Requires compliance with International Ethics Standards Board for Accountants (IESBA) Ethics Code
3. Professional skepticism and professional judgment
- Planning and performing the engagement shall be done exercising professional judgment and skepticism
4. Engagement-level quality management
- The engagement partner has overall responsibility for management in accordance with firm quality management policies
5. Acceptance and continuation of the interim review engagement
- The auditor shall ascertain that the proper conditions are present to perform the engagement and obtain an engagement letter
6. Communications with management and those charged with governance
- Significant matters requiring attention shall be communicated by the auditor
7. Planning and performing the engagement
- The auditor shall take into account aspects including group characteristics, materiality, understanding of the entity, financial reporting framework, internal control, and shall design and perform review procedures including analytical procedures and management inquiries, considering potential for related parties, going concern, regulatory noncompliance, and fraud.
8. Subsequent events
- Consider impact of subsequent events
9. Written representations
- Obtain written representations from management and other appropriate parties
10. Accumulation and evaluation of misstatements
- The auditor shall accumulate and discuss misstatements with management, have them corrected, and evaluate impact of noncorrected items
11. Other information
- Consider consistency of other information and determine disposition
12. Forming a conclusion on the interim financial information
- Evaluate all the evidence and form a conclusion as to fairness of the financial statements
13. Preparing the auditor’s interim review report
- Write the report with conclusion including description of the basis for the conclusion
14. Comparative information
- Determine that prior information and accounting policies agree with and are consistent with prior periods
15. Documentation
- Prepare and maintain adequate documentation that allows an experienced auditor with no prior connection to fully understand all aspects of the engagement
The Appendix provides further descriptions along with examples and illustrations of review reports under various circumstances.
Comments are due by September 3, 2026.
Further details can be found at ISRE 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity.
