Negative assurance

Negative assurance is a method used by the Certified Public Accountant to assure various parties, such as bankers and stockbrokers, that financial data under review by them is correct. Negative assurance tells the data user that nothing has come to the CPA's attention of an adverse nature or character regarding the financial data reviewed. This type of assurance is normally given to investment bankers and the SEC when the financial data are being used for stock and bond issuance. In addition, this assurance is given whenever a CPA is asked to comment on financial statements upon which a previous Audit Opinion has been rendered. (This type of assurance is unacceptable for the basic financial statements on which a certifying audit has been performed.)

Negative assurance comments are made on unaudited financial statements and subsequent changes, indicating that nothing came to the auditor's attention that suggests the statements do not comply with applicable accounting requirements; are not fairly presented in conformity with GAAP applied on a consistent basis; or do not fairly present information shown therein. Negative assurance is given because the auditor has not made an examination in conformity with Generally Accepted Auditing Standards (GAAS). Negative assurance is not appropriate unless the CPA has made an examination in accordance with GAAS for the accounting period before the current one. This is because the auditor needs evidence that can be related to comfort letter procedures. For negative assurance to be permissible, the evidence must have been gathered directly by the CPA giving the assurance, and not by another CPA.

This accountancy-related article is a stub. You can help Wikipedia by expanding it.v · Categories: Auditing Business terms Accounting stubs Wikimedia Foundation. 2010. Игры ⚽ Нужно сделать НИР? Volkhvy David R. Wintermann Look at other dictionaries: negative assurance — 1. . A weak form of external *audit opinion in circumstances when an auditor does not follow *Generally Accepted Auditing Standards (GAAS). Negative assurance is offered by external auditors to support specific transactions like *flotations, and… …   Auditor's dictionary Negative Assurance — A representation that particular facts are believed to be accurate since no contrary evidence has been found. Negative assurance is normally used by auditors in situations where it may not be possible to positively confirm the accuracy of… …   Investment dictionary assurance — late 14c., formal or solemn pledge, promise, also certainty, from O.Fr. asseurance (11c., Mod.Fr. assurance) assurance, promise; truce; certainty, safety, security, from asseurer (see ASSURE (Cf. assure)). The word had a negative tinge 18c.,… …   Etymology dictionary Prime d'assurance — Pour les articles homonymes, voir prime. La prime d assurance est le prix que le preneur d’assurance doit payer pour pouvoir bénéficier de la couverture d’assurance en cas de sinistre. La prime se compose de trois parties: la partie risque, la… …   Wikipédia en Français Intérêt d'assurance — Sommaire 1 Définition 2 Domaine 3 Applications 4 Références Définition L intérêt d assurance est une notion fondamentale du droit …   Wikipédia en Français Mission assurance — is a full life cycle engineering process to identify and mitigate design, production, test, and field support deficiencies of mission success. Contents 1 Aspects of Mission Assurance 2 Mission Assurance and Information Assurance Implementation… …   Wikipedia Sterility assurance level — (SAL) is a term used in microbiology to describe the probability of a single unit being non sterile after it has been subjected to the sterilization process. For example, medical device manufacturers design their sterilization processes for an… …   Wikipedia International Organization of Supreme Audit Institutions — Abbreviation INTOSAI Motto Experientia Mutua Omnibus Prodest, Mutual experience benefits all Formation 1953 Type IGO H …   Wikipedia List of accounting topics — Following is a list of accounting topics * Accounting Ethics * Accounting for risk * Accounting information system * Accounting methods * Accounting period * Accounting reform * Accounting scandals * Accounting software * Accounts payable *… …   Wikipedia Счётная Палата США — …   Википедия 18+ © Academic, 2000-2024 Contact us: Technical Support, Advertising Dictionaries export, created on PHP, Joomla, Drupal, WordPress, MODx. Mark and share Search through all dictionaries Translate… Search Internet Share the article and excerpts Direct link … Do a right-click on the link above and select “Copy Link”