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Dear Sir,
Would you kindly throw light as to what is the Lower Assurance in Audit ! if possible with the help of example !
with kind regards
Deep
I am a student as well but would suggest that it is review engagement e.g internal audit. They can only provide limited assurance usually expressed in negative form. For instance :nothing has been brought to our attention to make us believe that financial statements are misstated.
Only an external, independent, qualified and experienced auditor can provide reasonable assurance which is a higher level of assurance, but reasonable as it can not be absolute. In other words within a reasonable margin of error.
I don’t know if that answers the question
The term ‘lower assurance’ is unusual.
Tinashe seems to be right. Normal audits provide reasonable assurance (also known as positive assurance). The audit opinion will say that the FS show and rue and fair view (assuming that opinion is appropriate).
Other types of assurance engagement, such as giving assurance about a cash flow forecast, will provide only limited assurance (also known as negative assurance) saying that things are not obviously wrong.
It’s possible for a small copmany, that does not require a full statutory audit, to request a review of its FS. This is less demanding than an audit, cheaper and would provide limited assurance.
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