The statement that "We are not aware of any material modifications that should be made to the accompanying financial statements" expresses which of the following?
A) disclaimer of an opinion
B) negative assurance
C) negative confirmation
D) shared opinion

Question

Quizplus · Accepted Answer

The statement represents a negative assurance, indicating that nothing has come to the auditor's attention that would require material modifications to the financial statements. This contrasts with a disclaimer of opinion, which would indicate that the auditor is unable to express an opinion on the financial statements, and a shared opinion, which would indicate that the auditor shares responsibility for the financial statements with another auditor or auditors. A negative confirmation, on the other hand, is a form of obtaining evidence from third parties rather than a statement by the auditor.

The Statement That "We Are Not Aware of Any Material