The phrase 'reasonable assurance' in the auditor's report is intended to inform users that auditors:
A) act as insurers of the accuracy of the statements.
B) base their conclusions about the statements on professional judgment.
C) certify the material presented in the statements by management.
D) guarantee fair presentation of the financial statements.

Question

Quizplus · Accepted Answer

The phrase 'reasonable assurance' indicates that auditors base their conclusions on the financial statements using professional judgment. It implies a high level of assurance but does not guarantee absolute accuracy, certify the material, or act as insurers of the financial statements.

The Phrase 'Reasonable Assurance' in the Auditor's Report Is Intended