negative assurance

Definition

When auditors state they found nothing wrong in their limited review rather than affirmatively stating everything is correct. It's the professional equivalent of 'I didn't see any problems' rather than 'everything is definitely fine.'

Example Usage

The review engagement provides only negative assurance, meaning the accountants aren't saying the financials are right, just that they didn't notice them being wrong.

Origin

Auditing terminology distinguishing between review and audit levels of assurance

Fun Fact

Negative assurance is cheaper than a full audit but provides much less comfort—you get what you pay for in professional skepticism.

Source: Auditing and attestation standards terminology

Related Terms

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redemption

In finance, it's when you finally get your money back from investments, bonds, or that pawn shop guitar you regret selling. In real estate, it's your last-chance opportunity to reclaim property before foreclosure becomes permanent. Basically, it's the 'never mind, I'd like that back' clause in various financial and legal agreements, usually with a fee attached because nothing's ever free.

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window guidance

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audit trail

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Advanced

EBITDA

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Intermediate

stress test

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