With regard to financial statements, the auditor is required to obtain reasonable assurance, which is a level of assurance that is _______.
A)high, but not absolute
B)guaranteed, but not absolute
C)100%, but not objective
D)objective, and not subjective

Question

Quizplus · Accepted Answer

Reasonable assurance is a high level of assurance, but it is not absolute as there is inherent risk involved in financial statements. The auditor cannot provide a guarantee as they are not in a position to evaluate all of the information available. Therefore, option A is the correct answer.

With Regard to Financial Statements, the Auditor Is Required to Obtain