Accountants are permitted to express "negative assurance" in which of the following reports?
A) Standard unqualified audit report on audited financial statements.
B) Compilation report on unaudited financial statements.
C) Review report on unaudited financial statements.
D) Adverse opinion report on audited financial statements.

Question

Quizplus · Accepted Answer

Accountants are permitted to express "negative assurance" in a review report on unaudited financial statements, where they provide limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in accordance with the applicable financial reporting framework. This is also known as a "negative assurance" because the accountant is not providing an opinion on the financial statements as a whole, but rather indicating that they are not aware of any material misstatements. Negative assurance is not provided in a standard unqualified audit report, compilation report, or adverse opinion report.

Accountants Are Permitted to Express "Negative Assurance" in Which of the Following