Question

XYZ Corporation's Form 10-Q included condensed financial statements for its most recent fiscal quarter. However, investor Bernie Madeoffwith noticed there was no accountant's review report or other mention of an accountant's review included in the Form 10-Q and is very concerned about what he perceives to be an oversight. Bernie consults his close friend and confidante, Chuck Ponzie, who tells him not to worry and that it is probably safe to just assume XYZ Corporation's Independent Registered Public Accounting Firm, Foot & Crossfoot LLP, reviewed the condensed financial statements.

Is it reasonable for Bernie to assume the Form 10-Q condensed financial statements have been reviewed by Foot & Crossfoot LLP? Why or why not?

Answer 1

Form 10-Q is a quarterly conprehensive report to be issued made mandatory by the United states federal Securities and Exchange Commission, to be filed by publicly traded companies.

10-Q is submitted on the completion if each quarter , it shows the unaudited fianacial statement and gives an less detailed overview of the conpany's financial position.

Hence, it is not reasonable for Bernie to assume that Form 10-Q is reviewed by Foot & Crossfoot LLP as Form 10-Q is not required to be reviewed by accountants.