Which of the following is true of reviewed financial statements?
A) These represent the most basic level of financial statements.
B) These have a broader scope as compared to audited financial statements.
C) These provide assurance to the user of the financial statements.
D) These have a limited implication of assurance.

Question

Quizplus · Accepted Answer

Reviewed financial statements have a limited implication of assurance, as compared to audited financial statements. While review procedures are performed by the accountant to provide limited assurance that the financial statements are free of material misstatement, they do not provide the same level of assurance as an audit. Therefore, option D is the correct answer. Options A, B, and C are incorrect as they are not applicable to reviewed financial statements.

Which of the Following Is True of Reviewed Financial Statements