Financial statements of a nonissuer that have been reviewed by an accountant should be accompanied by a report stating that a review:
a. Includes examining, on a test basis, information that is the representation of management.
b. Provides only limited assurance that the financial statements are fairly presented.
c. Does not contemplate obtaining corroborating evidential matter or applying certain other procedures ordinarily performed during an audit.
d. Is substantially less than in scope than an audit.
I answered D and I was correct. But why is B not correct as well? This was Becker's justification:
Choice “b” is incorrect. While a review does provide only limited (negative) assurance, this statement is not explicitly stated in the accountant's review report.
That doesn't make any sense since per Becker's notes for Reporting on Reviews: “Paragraph should include: State that those standards require the accountant to perform procedures to obtain limited assurance that there are no material modifications that should be made to the financial statements.
I'm thoroughly confused…
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