Audit reports issued under the PCAOB and the AICPA standards contain two important phrases that are directly related to materiality and to risk: obtain absolute assurance and free of material misstatement.

Question

Quizplus · Accepted Answer

Audit reports issued under the PCAOB and AICPA standards cannot provide absolute assurance or guarantee that financial statements are completely free of material misstatement. These phrases are not used in audit reports, but instead use the phrase "reasonable assurance" and state that the financial statements are presented fairly, in all material respects.

Audit Reports Issued Under the PCAOB and the AICPA Standards