Proposal Tasks Auditors With Detailing Interim Financial Checks

An international standard-setter is proposing that auditors should spell out how thoroughly they have checked companies’ interim financial statements such as quarterly reports, which are often vetted less than annual reports.

Under proposals the International Auditing and Assurance Standards Board published Wednesday, auditors would have to explain what work they have done and how it differs from a full financial audit, which requires auditors to do more work so they can say they are confident in the accounts.

Interim disclosures, by contrast, are often subject to limited assurance, essentially a sense check for mistakes.

• “Interim financial information, such as quarterly ...