If the auditor has obtained a reasonable level of assurance about the fair presentation of the financial statements through understanding internal control, assessing control risk, testing controls and analytical procedures, then the auditor:
A) can issue an unqualified opinion.
B) needs to do additional tests of controls so that the assurance level can be increased.
C) can significantly reduce the test of details.
D) can write the engagement letter.

Question

Quizplus · Accepted Answer

The auditor can significantly reduce the test of details because they have obtained a reasonable level of assurance about the fair presentation of the financial statements through understanding internal control, assessing control risk, testing controls and analytical procedures.

If the Auditor Has Obtained a Reasonable Level of Assurance