Negative Assurance is explicitly stated by an auditor to negate all legal issues. After performing auditing procedures, negative assurance is issued, indicating nothing was brought to the auditors attention. Negative Assurance is always associated with unaudited financial statements. Negative assurance can be stated in a separate report or a paragraph before the opinion paragraph stating "nothing came to our attention".
Example:
However, in connection with our audit, nothing came to our attention that caused us to believe that Inadequate Disclosure has not complied, in all material respects, with the Act and the Order referred to in the preceding paragraph.