What should an auditor clarify in a report related to interim financial information presented in a registration statement?

In a situation where an auditor is involved with interim financial information presented in a registration statement, it is essential for the auditor to clarify that their involvement does not constitute a "report" in the traditional sense used for annual financial statements. Instead, it is viewed as a review, which provides limited assurance compared to an audit.

By making this distinction, the auditor helps users of the financial information understand the level of assurance being provided. This understanding is crucial because the interim financial information may not have undergone the same thorough auditing procedures as annual statements. Therefore, clarifying that this is not considered a "report" helps manage expectations regarding the reliability and comprehensiveness of the information provided.

This clarification is important for preventing misunderstandings by stakeholders who may be interpreting the interim financial information as being subject to the same rigorous standards as a full audit, reinforcing the need for transparency in the audit process.