Definition
Limited assurance is a meaningful level of assurance that is lower than reasonable assurance. In an attestation review under AT-C 210, the practitioner performs mainly inquiry and analytical procedures and reports in the form of a negative conclusion: nothing came to the practitioner's attention that causes the practitioner to believe the subject matter is materially misstated. The procedures are fewer than in an examination, so the conclusion carries less assurance.
Why it matters in an audit or review
Users of a limited assurance report need to know what they received. The report's wording and procedures differ from an opinion. Sustainability data, interim information and some compliance assertions are often reviewed instead of examined to control cost, and the intended users should accept that tradeoff.
Example
Illustrative: a company asks for assurance on its annual energy use. A review costs less than an examination. The report says nothing came to the practitioner's attention indicating a material misstatement, but it does not say the data is fairly stated.
Common mistakes
- Treating a review conclusion as an opinion.
- Mixing up an attestation review under AT-C 210 with a review of financial statements under AR-C 90, which is a separate standard.
Sources
- AICPA, AT-C Section 210, Review Engagements
- AICPA, AT-C Section 105, Concepts Common to All Attestation Engagements
Definitions paraphrase AICPA and FASB guidance; read the standard itself before relying on a requirement. Example figures are illustrative. This page is guidance, not professional advice. Report an error