The concept of reasonable assurance indicates that the auditor is
A) not a guarantor of the correctness of the financial statements.
B) not responsible for the fairness of the financial statements.
C) responsible only for issuing an opinion on the financial statements.
D) responsible for finding all misstatements.

Question

Quizplus · Accepted Answer

The concept of reasonable assurance means that the auditor is responsible for obtaining sufficient appropriate audit evidence to provide a reasonable basis for their opinion on the financial statements. However, the auditor is not a guarantor of the correctness of the financial statements, as this would require absolute certainty, which is not possible.

The Concept of Reasonable Assurance Indicates That the Auditor Is