Users of the financial statements rely on the auditor's report because it provides absolute assurance the report provides.

Question

Quizplus · Accepted Answer

The auditor's report provides reasonable assurance, not absolute assurance. This means that there is still some level of risk or uncertainty involved in the financial statements, but the auditor has conducted enough testing and analysis to express an opinion that the statements are fairly presented in accordance with accounting standards.

Users of the Financial Statements Rely on the Auditor's Report