This level of assurance means that controls achieve a sensible balance of reducing risk when compared with the cost of the control.
A)Absolute assurance
B)Probable assurance
C)Reasonable assurance
D)Convincing assurance

Question

This level of assurance means that controls achieve a sensible balance of reducing risk when compared with the cost of the control.
A)Absolute assurance 
B)Probable assurance
C)Reasonable assurance 
D)Convincing assurance

Quizplus · Accepted Answer

Reasonable assurance means that controls are designed and implemented to achieve a sensible balance of reducing risk when compared with the cost of the control. This is the most common level of assurance provided by auditors. It does not provide an absolute guarantee that all errors or fraud will be detected but provides a strong indication that the financial statements are fairly presented. Option A (Absolute assurance) is an unrealistic expectation as it is impossible to achieve complete assurance that there is no risk or error. Option B (Probable assurance) and Option D (Convincing assurance) are not commonly used terminology in auditing, and therefore less probable the answer.

This Level of Assurance Means That Controls Achieve a Sensible