SRE 2410 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
SRE 2410 is the ICAI standard that governs a "limited review" of interim financial information, such as half-yearly or quarterly statements, when the reviewer is the entity's own auditor. The auditor asks questions and applies analytical procedures, and gives a conclusion that is deliberately weaker than an audit opinion. A disciplined quarterly close is what makes it quick, and our support for large company annual filings and compliance fits around it.
SRE 2410, effective for reviews of interim financial information for periods beginning on or after April 1, 2010 (paragraph 65). ICAI may revise standards, so check the current text on icai.org.
SRE 2410 applies to the independent auditor of the entity reviewing interim financial information (paragraph 1). The aim is a conclusion on whether anything has come to attention suggesting the information is not prepared in all material respects under the framework, with the risk of an inappropriate conclusion reduced to a moderate level (paragraph 7). It is not an audit and gives no true and fair view opinion (paragraph 8). Interim results of listed entities that are reviewed by their auditors are reviewed under this standard.
Who and what
Paragraph 1 limits the standard to the auditor of the entity's financial statements. Paragraph 2 defines interim financial information as financial information prepared under an applicable framework, comprising a complete or condensed set of statements, for a period shorter than the financial year. Paragraph 3 explains why the auditor is the right person: the audit gives an understanding of the entity and its environment, including internal control, which the review updates. A practitioner who is not the auditor reviews under SRE 2400 (Revised) instead; see our articles on SRE 2400 (Revised), part 1 and part 2. Paragraph 3a lets the standard be adapted when an entity's auditor reviews other historical information.
Listed entities' interim results are reviewed by their auditors under this standard. The listing regulations are outside this article; for the audit committee side see our regulation 18 guide.
Principles and objective (paragraphs 4 to 9)
The auditor follows the ethical requirements relevant to the audit of the annual statements (paragraph 4), applies engagement-level quality control (paragraph 5) and plans and performs the review with professional skepticism (paragraph 6). Paragraph 7 states the objective: to conclude, on the basis of inquiries and analytical and other review procedures, whether anything has come to attention that causes belief that the interim information is not prepared, in all material respects, under the framework, and to reduce the risk of an inappropriate conclusion to a moderate level. Paragraphs 8 and 9 stress the difference from an audit: no basis for a true and fair view opinion, no reasonable assurance, and only inquiries and analytical procedures that do not provide all the evidence an audit would.
Agreeing terms (paragraphs 10 and 11)
The auditor and client agree the terms, ordinarily in an engagement letter. It deals with objective and scope, management's responsibility for the information, internal control and access to records, management's agreement to give written representations, the form of the report and its addressee, and management's agreement that a document containing the information will include the review report where it says the information has been reviewed. The terms may be combined with the terms of the annual audit.
Procedures (paragraphs 12 to 29)
| Step | What the auditor does | Paragraph |
|---|---|---|
| Understand the entity | Update the understanding of the entity, environment and internal control, including controls over interim reporting, to identify types of potential misstatement and choose procedures | 12 to 14 |
| Updating procedures | Read earlier audit and review documentation, consider prior significant risks and misstatements, read recent annual and interim information, consider materiality, results of internal audit, and ask management about fraud risk, changes in business and controls and how the interim information was prepared | 15 |
| Components | Decide the review procedures for components and communicate with other auditors | 16 |
| New auditor | Obtain the understanding afresh, including inquiries of the predecessor and perusal of audited statements | 17, 18 |
| Core procedures | Make inquiries, primarily of those responsible for financial and accounting matters, and perform analytical and other review procedures | 19 |
| Ordinarily no testing | A review ordinarily does not require tests of records through inspection, observation or confirmation | 20 |
| Typical steps | Read minutes, consider prior modifications and adjustments, communicate with component auditors, inquire about framework compliance, policy changes, unusual transactions, related parties, covenants, fraud and non-compliance, apply analytical procedures, and read the information | 21 |
| Legal letters | Ordinarily no inquiry letter to the entity's lawyer unless something prompts it | 24 |
| Agree to records | Obtain evidence that the information agrees or reconciles to the accounting records | 25 |
| Subsequent events | Inquire whether management identified events up to the report date; no other procedures required for later events | 26 |
| Going concern | Inquire whether management changed its assessment; if doubts arise, inquire about plans and consider disclosure | 27, 28 |
| Questions arising | If a matter suggests a material adjustment may be needed, make additional inquiries or perform other procedures to resolve it | 29 |
The auditor may do some work earlier in the period or together with the annual audit (paragraphs 22 and 23). For going concern in an audit see our post on SA 570.
Evaluating misstatements (paragraphs 30 to 33)
The auditor evaluates uncorrected misstatements individually and in aggregate to see whether they are material (paragraph 30). A review is not designed to obtain reasonable assurance, but misstatements that come to attention, including inadequate disclosures, are evaluated to decide whether a material adjustment is needed (paragraph 31). Professional judgment considers nature, cause, amount, whether the item came from an earlier period and the effect on future periods (paragraph 32), and a clearly trivial threshold may be set, bearing in mind that small amounts can still be material in nature (paragraph 33).
Management representations (paragraphs 34 and 35)
The auditor obtains written representations covering management's responsibility for internal control to prevent and detect fraud and error, preparation of the information under the framework, a belief that uncorrected misstatements aggregated by the auditor are immaterial (with a summary attached), disclosure of frauds or suspected frauds and the fraud risk assessment, disclosure of non-compliance with laws, and disclosure of significant subsequent events up to the report date. Further representations may be sought for the entity's business or industry. Appendix 3 holds an illustrative letter; we do not reproduce it.
Accompanying information and communication (paragraphs 36 to 42)
The auditor reads other information accompanying the interim information for material inconsistency (paragraph 36) and discusses an apparent material misstatement of fact with management (paragraph 37). If a matter suggests a material adjustment is needed, the auditor tells management as soon as practicable (paragraph 38), informs those charged with governance if management does not respond (paragraph 39), and, if they do not respond either, considers modifying the report, withdrawing, or resigning from the audit appointment (paragraph 40). Suspected fraud or non-compliance is communicated to the appropriate level of management (paragraph 41) and matters of governance interest to those charged with governance (paragraph 42).
The review report (paragraphs 43 to 63)
The written report carries a title, addressee, identification of the information reviewed, a statement of management's responsibility, the auditor's responsibility to express a conclusion, a statement that the review was conducted under SRE 2410 and consists mainly of inquiries and analytical and other review procedures, a statement that a review is substantially less in scope than an audit so that no audit opinion is expressed, the conclusion in negative form, and the date, place, signature, membership number and firm registration number (paragraph 43). Where the law prescribes wording for the conclusion, the auditor may have to use it, but the responsibilities in the standard stay the same (paragraph 44). Appendices 4 to 7 give illustrative reports.
A departure from the framework that management does not correct leads to a qualified or adverse conclusion (paragraphs 45 to 47). A limitation on scope ordinarily prevents completion of the review; the auditor tells management and those charged with governance in writing why and considers whether to issue a report (paragraphs 48 to 52), and only in rare cases confined to specific matters that are not pervasive is a qualified conclusion given (paragraph 53). Where going concern uncertainty is adequately disclosed the auditor adds an emphasis of matter paragraph; where it is not, a qualified or adverse conclusion follows (paragraphs 56 to 59). Paragraphs 61 and 62 deal with the review report being included in documents that say the information was reviewed. Documentation must let an experienced auditor with no previous connection understand the work (paragraph 64).
Worked example (illustrative)
Sundaram Components Ltd, an invented listed manufacturer, gives its auditor half-year statements. Illustrative figures: sales up 12 per cent but trade receivables up 35 per cent. The auditor updates the understanding, reads board minutes, makes inquiries and applies analytics. The receivable jump prompts additional inquiries about a large last-week dispatch (paragraph 29); the auditor reads the sales contract and finds the terms are consistent with recognition. Management gives the representations, and the auditor issues an unmodified conclusion in the negative form. Had management refused to correct a misapplied accounting policy of material effect, paragraph 45 would require a qualified or adverse conclusion.
Common lapses
- Treating the review as an audit and quoting a true and fair view.
- Skipping the updating of internal control understanding for interim reporting.
- Ignoring unusual transactions in the last days of the period.
- Representations obtained late or without the summary of uncorrected misstatements.
- Report wording that departs from the standard without a legal prescription.
Need help preparing interim results for a limited review?
Interim reviews move quickly when the closing process, ledger reconciliations and board minutes are in order. We can help you build a monthly or quarterly closing routine and the reporting pack; see our support for large company annual filings and compliance.
Key takeaways
- SRE 2410 applies when the entity's own auditor reviews interim information.
- The conclusion is negative in form and the risk is reduced to a moderate level (paragraph 7).
- Procedures are mainly inquiry and analytical; testing is not ordinarily required (paragraph 20).
- Written representations must include a summary of uncorrected misstatements (paragraph 34).
- The report states that no audit opinion is expressed (paragraph 43).
Read next
- SRE 2400 (Revised), part 1
- SRE 2400 (Revised), part 2
- SA 570, going concern
- Regulation 18, audit committee under LODR
Disclaimer: Based on the Standards on Auditing, the review, assurance and related services standards, the Compendium of Standards on Internal Audit (as on 1 October 2022) and the Compendium of Forensic Accounting and Investigation Standards (as on September 2025) issued by the Institute of Chartered Accountants of India, in the versions named in the article, as consulted on 4 October 2026. ICAI revises standards from time to time; check the current text and effective dates on icai.org and the Companies Act provisions referred to. This article is general information, not legal advice; check the official text before acting.