Why negative assurance generally prohibited in audit reports

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Question: Negative Assurance in Review Reports. One portion of the report on a review services engagement is the following: "Based on my review, I am not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with generally accepted accounting principles [or another framework for financial reporting]."

Required: a. Is this paragraph a "negative assurance" given by the accountants?

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 financial statements and on interim financial information?

Reference no: EM131622197

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