What is Limited assurance (negative assurance)?
In short
Limited assurance is the level of assurance in a review engagement: the accountant concludes that they are not aware of any material modifications needed for the financial statements to conform with the framework.
Key takeaways
- It rests mainly on inquiry and analytical procedures, not tests of details.
- An audit gives reasonable assurance; a compilation gives no assurance.
- The conclusion is worded negatively, which is why it is also called negative assurance.
Where it's tested
AUD: Reviews, Compilations & Agreed-Upon Procedures — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Which procedures form the primary basis of a review of financial statements under SSARS?