A PA states in the report on a review services engagement the following: Based on my review,

Question:

A PA states in the report on a review services engagement the following: Based on my review, I am not aware of any material modifications that should be made to the accompanying in order for them to be in conformity with GAAP.

Required:
a. Is this paragraph a “negative assurance” given by the PA?
b. Why is negative assurance generally prohibited in audit reports?
c. What justification is there for permitting negative assurance in a review services report on unaudited and on interim financial information?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...