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Hi,
What is the difference between limited assurance and negative assurance?Based on my understanding, for report on due diligence is limited assurance.
(I saw in BPP revision kit pg416 “note that due diligence review does not give ‘negative assurance’ but rather ‘limited assurance’ which is expressed in a negative form of words)For report on prospective financial information, it is negative assurance.
(I saw in pg 415 for content included in the report “A statement of negative assurance as to whether the assumptions provide a reasonable basis for prospective financial information)However, both of the wording seem similar in negative form “nothing has come to our attention which…”
So what is the difference between limited and negative assurance?
Thank you and have a nice day.
If you download our notes https://opentuition.com/acca/aaa/ you will find that the pdf is searchable – so there are a lot of answers to be found directly.
A “limited assurance” engagement means that work is, in some way, limited and hence the assurance is limited – which is expressed “negatively”.
The terms “negative” and “positive” are widely used to describe how conclusions are expressed – but the correct technical terms for the level of assurance and type of engagement are “reasonable” and “limited”.
So no difference except that the one is the technically correct term that is defined in IAASB pronouncements – the other is not defined.
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