what is negative assurance? under what circumstances such assurance is given?
Negative Assurance:
Negative assurance is a form of limited assurance provided by auditors or professionals, expressing that, based on limited procedures, they did not find any evidence to believe that a particular assertion is not presented fairly or does not conform to specified criteria.
Circumstances for Giving Negative Assurance:
01. In review engagements, where the auditor performs limited procedures.
02. When the scope of the engagement is explicitly limited.
03. In specific assertions or elements of financial statements.
04. In comfort letters for third parties.
05. In engagements with agreed-upon procedures based on specified criteria.
It is given when a comprehensive audit is not conducted, and the assurance is limited to specific aspects of the information.