The auditor's responsibility section in an audit report states that "…the standards require that we plan and perform the audit to obtain ________ assurance about whether the financial statements are free of material misstatement." What type of assurance is given?
A) immediate
B) limited
C) reasonable
D) absolute

Question

Quizplus · Accepted Answer

The phrase "reasonable assurance" is the specific term defined in auditing standards to describe the level of assurance provided by an audit. This means that the auditor has performed their work with due care and professional skepticism to provide an opinion that the financial statements are fairly presented and free from material misstatement. However, it does not provide absolute assurance as there is always a risk that some misstatements or fraud may go undetected.

The Auditor's Responsibility Section in an Audit Report States That