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Just want to confirm What kind of assurance is provided on:
1) Due Diligence Report
2) Prospective Financial information (PFI)Is it negative assurance or no assurance
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Sorry for not replying in the chat room.
Anyway, you need to understand what is negative assurances. (TYPES of assurances)
Audit provides positive assurances, ie. the wordings are in a positive form.
“In our opinion, the financial statements of ABC Co for the year ended
December 31, 20X1 gives a true and fair view of ……..’In contrast, reviews provides negative assurances, which is
“Based on our review, nothing has come to our attention that causes us to believe the financial statements do not give a true and fair view……..’Next, LEVEL of assurance.
Audit provides REASONABLE assurances, while Review provides LIMITED assurances.
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ANYTHING with the word REVIEW/ASSURANCES, other than an audit of financial statements provides limited assurances.
So, limited assurances is the answer.
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