Negative Assurance

Posted in Finance, Accounting and Economics Terms, Total Reads: 190

Definition: Negative Assurance

Negative Assurance is used by Certified Public Accountants and Auditors to certify that data under review is true since no contrary evidence is found.

Negative Assurance is a method used by auditors to confirm the accuracy of financial data when it is not possible to confirm the same positively. It is used to assure various parties like bankers and stockbrokers there is no any evidence that can disprove the data provided by them.

When one accountant prepares financial statements, chief accountant uses negative assurance to validate those financial statements. It tells the accountant that financial statements are made in accordance with the rules and it does not involve any misstatement.



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