In this question, candidates were required to define negative assurance and then explain how this differs from assurance on an audit report.

The question was worth 4 marks. In line with requirement (a), the definition was worth a mark with additional marks available for explaining the difference between the two types of assurance.

Many candidates managed to produce a basic definition of negative assurance although there remained some confusion regarding the difference between this and assurance given on an audit report.

The main weakness was using the term true and fair view in the context of an assurance engagement with only a minority of candidates recognising that truth and fairness relate to statutory audit. A significant minority of candidates did not attempt this question, presumably due to time allocation problems at the end of the examination.

Example comments provided and reasons why those comments did not obtain a pass standard are noted below:

Answer comment
“Negative assurance means that the cash flow does not present a true and fair view.”

Examiners assessment of comment
As noted above, negative assurance needs to be linked to lack of knowledge of material error, not true and fair view.

Other common errors included:

• Repeating audit procedures on going concern. As for requirement (c), these were relevant to part (b) of this question.

The standard of answer was therefore inadequate.