Advanced Auditing

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Aditya (Querist)
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13 October 2007 AAS 33: engagements to review Statements
states that
A review provides a moderate level assurance that the information subject to review is free of material misstatement, this is expressed in the form of negative assurance.

My Question is WHAT IS THE NEGATIVE ASSURANCE
over here?If the reviewer is assuring something how can that be a -ve?
i mean is that that he is not assuring something?
Kindly elucidate me the meaning how the review report should contain a "negative assurance"

2)RE: PROFESSIONAL MISCONDUCT:
a)Is the clause of undercutting of fees applicable on an auditor ?

and

b)A listed company has CA. Arun Kumar as its auditor. Now the co. decides to appoint one more auditor CA. K.L.Iyer as the joint auditor. HERE IS THE SECOND AUDITOR K.L. Iyer required to communicate to CA. Arun Kumar ?
if he doesnt will he be charged for prof misconduct?

Aditya

Aditya (Querist)
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13 October 2007 Kindly reply asap.

CMA Gul S

CMA Gul S (Expert)
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13 October 2007 Yes Undercutting of Fees is a Professional Misconduct

CA. Rayan Sequeira

CA. Rayan Sequeira (Expert)
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13 October 2007 Gul i would like to disagree with you on the point that as per the new regulation undercutting of fees doesnot form a professional misconduct

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