The auditor provides "reasonable", as opposed to "absolute" assurance that the financial statements provide no material misstatement.

Question

Quizplus · Accepted Answer

This is correct based on the generally accepted auditing standards. The auditor is not able to provide absolute assurance as there is always a risk of material misstatement, but they use professional judgment and perform procedures to provide reasonable assurance that the financial statements are free from material misstatements.

The Auditor Provides "Reasonable", as Opposed to "Absolute" Assurance That