- 1 Marks
AAA – L3 – SA – Q1.9 – Negative Assurance
Question
What is meant by negative assurance?
A The auditor cannot give an opinion due to lack of evidence.
B The client’s financial statements were found to be materially misstated.
C The auditor could not conduct any tests due to lack of controls.
D The auditor did not find anything to indicate that a material misstatement exists.
Answer
D
Explanation:
Negative assurance means the auditor did not find anything to indicate that a material misstatement exists, typically used in review engagements. Option A refers to a disclaimer of opinion, option B to a qualified or adverse opinion, and option C to a limitation of scope, none of which define negative assurance. Thus, D is the correct answer.
- Tags: Assurance engagements, Audit opinion, ICAG, Negative Assurance
- Level: Level 3
- Topic: Assurance Services
- Uploader: Salamat Hamid