The most likely reason a practitioner cannot issue a review report is:

The most likely reason a practitioner cannot issue a review report is:

• A. The criteria are not generally accepted.
• B. There is a major error in the financial statements.
• C. The scope of the engagement has been significantly limited.
• D. The client refuses to allow communication with third parties.

Answer: (C)

In a review engagement, the practitioner provides limited assurance by performing inquiries and analytical procedures to obtain evidence about whether the financial statements are free of material misstatements. A fundamental condition for issuing a review report is being able to obtain sufficient appropriate evidence to support that conclusion. The most likely reason you cannot issue a review report is if the scope of the engagement is significantly limited. When the scope is restricted, the practitioner cannot perform the necessary procedures or gather enough evidence to form that limited assurance conclusion, so a review report cannot be issued. This is the core reason because the engagement lacks the foundation needed to express even limited assurance. If the accounting framework isn’t generally accepted, or if there’s a major misstatement, or if the client blocks communication with third parties, these can also hinder reporting, but they all revolve around the same underlying issue: the inability to obtain or rely on adequate evidence to support a conclusion. The most immediate and direct blocker among these is a significantly limited scope.

In a review engagement, the practitioner provides limited assurance by performing inquiries and analytical procedures to obtain evidence about whether the financial statements are free of material misstatements. A fundamental condition for issuing a review report is being able to obtain sufficient appropriate evidence to support that conclusion.

The most likely reason you cannot issue a review report is if the scope of the engagement is significantly limited. When the scope is restricted, the practitioner cannot perform the necessary procedures or gather enough evidence to form that limited assurance conclusion, so a review report cannot be issued. This is the core reason because the engagement lacks the foundation needed to express even limited assurance.

If the accounting framework isn’t generally accepted, or if there’s a major misstatement, or if the client blocks communication with third parties, these can also hinder reporting, but they all revolve around the same underlying issue: the inability to obtain or rely on adequate evidence to support a conclusion. The most immediate and direct blocker among these is a significantly limited scope.