The use of the term "reasonable assurance" is intended to indicate that an audit cannot be expected to
A)completely eliminate the possibility that a material error or fraud exists.
B)consider or search for minor errors.
C)be compliant with the generally accepted accounting principles for every account.
D)provide assurance of no material errors or irregularities to investors who are using the financial statements for investment decisions.

Question

Quizplus · Accepted Answer

The term "reasonable assurance" acknowledges that there is some risk of material misstatement or fraud despite the auditor's efforts. It is impossible for an audit to completely eliminate this risk, so the auditor can only provide a reasonable level of assurance that the financial statements are free of material misstatement or fraud.

The Use of the Term "Reasonable Assurance" Is Intended to Indicate