An accountant's report includes the phrase "We are not aware".This phrase indicates
A)an attestation was not performed.
B)management had not established sufficient criteria for an opinion to be issued.
C)the auditor is providing negative assurance.
D)a disclaimer of opinion is presented.

Question

Quizplus · Accepted Answer

The phrase "We are not aware" typically indicates negative assurance, meaning that the auditor has not found any evidence to suggest a particular issue or problem, but cannot provide assurance that it does not exist. This is different from a disclaimer of opinion, which would indicate that the auditor is unable to provide an opinion on the financial statements due to significant limitations or lack of information. Option A is incorrect as the use of the phrase suggests that an attestation was performed, while option B is incorrect as it relates to insufficient criteria rather than negative assurance.

An Accountant's Report Includes the Phrase "We Are Not Aware