Negative assurance may be expressed when an accountant is requested to report on the:

Question

Quizplus · Accepted Answer

Choice "C" is correct. Negative assurance may be expressed when an accountant is requested to report on the results of performing a review of management's assertion. Choice "A" is incorrect. No assurance is provided in a compilation of prospective financial statements. Choice "B" is incorrect. Whether an entity is in compliance with the provisions of the Foreign Corrupt Practices Act is a legal determination. An accountant may perform an examination or an agreed-upon procedures engagement with respect to such compliance but may not perform a review, and therefore would not express negative assurance. Choice "D" is incorrect. When reporting on an audit of historical financial statements, negative assurance is not an appropriate reporting option. The auditor must either express an opinion (positive assurance) or disclaim an opinion (no assurance).

Negative Assurance May Be Expressed When an Accountant Is Requested