a) is an individual’s or company’s acknowledgment of the fact that it isn’t possible to make a definitive declaration that a specific event can or cannot occur. In the business world, accountants, auditing companies, and their customers usually adhere to this principle, which makes the negotiation process a lot easier. However, as reasonable assurance can’t be clearly defined, it may lead to misunderstandings between the two parties that want to make a deal since they may have different expectations.
b) a condition that while a specific standard exists within the allowed limits, it isn’t disproportionate or redundant in any way.
In a Sentence:
As long as you can provide us reasonable assurance that the business climate in the area won’t change in the next year, I think we can make a deal.
Mr. Ornall couldn’t agree to the reasonable assurance offered by the auditing company, as that meant risking his entire business.
The new CEO asked the owner of the organization to understand that all he could offer was reasonable assurance that the company won’t fall prey to the competing firms.
Synonyms and related words: positive assurance, assurance, supplier quality assurance, collateral assurance