The PCAOB Auditing Standards require the auditor to provide which of the following?
A)Reasonable assurance on the financial statements, absolute assurance on internal control.
B)Reasonable assurance on internal control, absolute assurance on the financial statements.
C)Absolute assurance on both the financial statements and internal control.
D)Reasonable assurance on both the financial statements and internal control.

Question

Quizplus · Accepted Answer

The PCAOB (Public Company Accounting Oversight Board) Auditing Standards require the auditor to provide reasonable assurance on both the financial statements and internal control. Reasonable assurance means that the auditor obtains sufficient and appropriate audit evidence to reduce the audit risk to an acceptably low level. The auditor is not required to provide absolute assurance, which is impossible to achieve in practice.

The PCAOB Auditing Standards Require the Auditor to Provide Which