The Handbook to IFRS Transition and to IFRS U.S. GAAP Dual Reporting

7.10 AUDITED VERSUS UNAUDITED

This Book does not analyze aspects of auditing in detail. This paragraph simply compares auditing requirements of interim as opposed to annual financial statements.

In general, interim financial statements may be unaudited.182 Interim financial statements on Form 10-Q must be reviewed by an independent registered public accountant prior to filing. A company is not required to file a review report, unless it mentions this review in a filing.183 If interim financial statements on Form 20-F, including selected financial data, are unaudited, the fact must be disclosed.184 Form 20-F encourages but does not require a review for interim financial statements that provide more current information (Paragraph 7.3.5 previously). Again, the review report must be included in a document that refers to that report.185

By contrast, an issuer's financial statements included in a filing with the SEC must be audited and a public accounting firm registered with the PCAOB must issue the audit report.186 The same requirements generally apply to financial statements of a subsidiary guarantor under Section 270-10-S99 (Regulation S-X 3-10), as they must comply with the rules for registrants.187 Financial statements of other entities included in the registrant's document under Regulation S-X 3-05 and 3-14 must also be audited,188 except for targets in proxy statements of Form S-4 and Form F-4.189 Auditing is required for financial statements filed under Regulation S-X 3-09 only ...