The external audit will provide reasonable assurance that:
A)transactions that occurred have been carried out efficiently and effectively
B)assets and liabilities in the financial statements exist and transactions reported actually occurred
C)assets listed are owned by the organisation and liabilities owed are repaid
D)amounts on the financial statements have been calculated in accordance with company policies

Question

Quizplus · Accepted Answer

The external audit provides reasonable assurance that the assets and liabilities in the financial statements are real and that the transactions have actually taken place. This is known as the verification aspect of an audit, and it is one of the most critical components of the audit process. External auditors are responsible for obtaining supporting information and documentation from reliable sources to ensure that the information provided in the financial statements is accurate and unbiased.

The External Audit Will Provide Reasonable Assurance That