Question

A special report related to compliance with contractual provisions provides

a. Positive assurance.
b. Negative assurance.
c. No assurance.
d. None of the above.

Answer 1

The correct answer is positive assurance, which means reasonable assurance of compliance with contractual provisions.

Step-by-step explanation:

The correct answer is a. Positive assurance.

Positive assurance in compliance with contractual provisions means that there is reasonable assurance that there has been full compliance with the provisions mentioned in the contract. It is a statement provided by a third-party auditor or evaluator after conducting a thorough examination or review of the relevant information and evidence.

For example, if a company has a contract with a supplier that includes a provision for delivering goods on time, positive assurance would mean that the auditor has determined that the company has indeed fulfilled this obligation and has delivered the goods within the agreed-upon timeframe.