If the auditor has obtained a reasonable level of assurance about the fair presentation of the financial statements through understanding internal control, assessing control risk, testing controls, and performing analytical procedures, then the auditor:
A) can significantly reduce the test of details.
B) needs to do additional tests of controls so that the assurance level can be increased.
C) can issue an unqualified opinion.
D) can write the engagement letter.

Question

Quizplus · Accepted Answer

The auditor can significantly reduce the test of details if they have obtained reasonable assurance about the fair presentation of the financial statements through understanding internal control, assessing control risk, testing controls, and performing analytical procedures.

If the Auditor Has Obtained a Reasonable Level of Assurance