There are several reasons why the auditor is responsible for reasonable but not absolute assurance. One of them is that:
A) most audit evidence results from testing a sample of a population and sampling involves minimal risk.
B) accounting presentations contain complex estimates that can be convincing.
C) audit testing and the evaluation of test results require significant auditor judgement, and auditors can make errors in judgement.
D) fraudulently prepared financial statements are often extremely difficult, but not impossible, for the auditor to detect.

Question

Quizplus · Accepted Answer

Reasonable assurance is provided by the auditor as audit testing and evaluation of test results require significant auditor judgement, and auditors can make errors in judgement. Absolute assurance cannot be obtained because there may be factors that are beyond the auditor's control and fraud may be difficult to detect. Additionally, all audit evidence is obtained by testing a sample of a population, which involves some level of risk. Complex estimates can also add to the risk of auditor error in judgement.

There Are Several Reasons Why the Auditor Is Responsible for Reasonable