Which of the following is not one of the reasons that auditors provide only reasonable assurance on the financial statements?
A) The auditor commonly examines a sample, rather than the entire population of transactions.
B) Accounting presentations contain complex estimates which involve uncertainty.
C) Fraudulently prepared financial statements are often difficult to detect.
D) Auditors believe that reasonable assurance is sufficient in the vast majority of cases.

Question

Quizplus · Accepted Answer

Auditors do not provide only reasonable assurance because they believe it is sufficient in the vast majority of cases. In fact, auditors must provide only reasonable assurance due to the inherent limitations of an audit, including the reliance on sampling and the possibility of management override or fraud. The other three options (A, B, and C) are all valid reasons why auditors can provide only reasonable assurance.

Which of the Following Is Not One of the Reasons