Ace the Audit: 2026 CPA Auditing & Attestation Exam – Level Up Your Accounting Game!

An auditor can indeed express negative assurance on supplementary information required by GAAP, provided that this information is not part of the basic financial statements. Negative assurance indicates that nothing has come to the auditor’s attention that would suggest that the supplementary information is not presented fairly in accordance with the applicable financial reporting framework. This typically happens after the auditor performs limited procedures to assess the information, such as inquiries or analytical procedures.

In the context of GAAP, supplementary information often complements the basic financial statements and, while it may not be subjected to the same level of scrutiny as the financial statements, an auditor can provide some level of assurance based on their review. Negative assurance is essentially a lower level of assurance compared to the positive assurance typically associated with a full audit opinion on the financial statements.

The process allows auditors to communicate their findings about the supplementary information without fully auditing it, thereby providing users some level of confidence while recognizing the limitations of their work.