The use of negative assurance in a report by a CPA associated with a set of financial statements would be appropriate only in:
A) examinations.
B) reviews.
C) agreed-upon procedures.
D) reviews and agreed-upon procedures.
E) audits.

Question

Quizplus · Accepted Answer

Negative assurance is appropriate in review engagements, where the CPA provides a limited assurance that nothing has come to their attention that causes them to believe the financial statements are not presented fairly, in all material respects. This is less assurance than an audit but more than what is provided in agreed-upon procedures, where specific procedures are agreed upon and no assurance is provided.

The Use of Negative Assurance in a Report by a CPA