ACCA AA · Chapter 1 · Question 3 of 8
An accountancy firm has completed a review engagement on a client's interim financial statements under ISRE 2400. Which of the following wordings is most appropriate for the conclusion in its report?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Based on our review, nothing has come to our attention that causes us to believe that the financial statements are not prepared, in all material respects, in accordance with the applicable framework
Explanation
A review engagement gives limited assurance, so the practitioner expresses a negative conclusion stating that nothing has come to their attention suggesting the information is materially misstated. A positive 'true and fair' opinion is reserved for reasonable assurance engagements such as an audit. Practitioners never certify that information is free from all error.
More Audit and other assurance engagements MCQs
- Q5Which of the following beliefs held by some users of financial statements contributes to the 'expectation gap'?
- Q6In an audit of financial statements, who has primary responsibility for preparing the financial statements?
- Q7A bank has asked a practitioner to provide assurance on a cash flow forecast prepared by the directors of Ostrander Co, which the bank…
- Q8Consider the following engagements: 1. Statutory audit of annual financial statements 2. Review of interim financial statements under ISRE…
- Q1Which of the following is NOT one of the elements of an assurance engagement?