The objective of a review of financial statements is to state whether anything has come to the auditor's attention that indicates that the financial statements are not presented fairly, in all material respects, in accordance with the applicable financial reporting framework.
If an auditor believes that an understanding with the client has not been established, the auditor should ordinarily decline to accept or perform the audit engagement. Establishing an understanding with the client is a crucial step in the audit process, as it helps define the responsibilities and expectations of both the auditor and the client.
he statement "Consulting services ordinarily involve external reporting" is false.
Consulting services typically do not involve external reporting. Consulting engagements focus on providing advice, expertise, and recommendations to assist clients in improving their business operations, resolving specific problems, or implementing new initiatives. The scope and nature of consulting services can vary widely and may include areas such as strategy development, process improvement, technology implementation, risk management, and organizational change.
The statement "These statements are issued to provide practical assistance to auditors in implementing PSAs or to promote good practice" is correct about Philippine Auditing Practices Statements (PAPS).
