Which of the following would be an example of a reasonable assurance engagement?
A) the review of annual financial statements
B) the audit of annual financial statements
C) the reporting of procedures performed by the auditor as agreed by the client
D) all of the above

Question

Quizplus · Accepted Answer

A reasonable assurance engagement is one that provides a moderate level of assurance that the financial statements are free from material misstatement. An audit of annual financial statements provides this level of assurance. A review engagement provides limited assurance, and reporting on procedures performed as agreed by the client is an agreed-upon procedures engagement, which is not classified as a reasonable assurance engagement. Therefore, option B is the only example of a reasonable assurance engagement.

Which of the Following Would Be an Example of a Reasonable