The scope paragraph of the standard unqualified auditor's report states that "… the standards require that we plan and perform the audit to obtain ________ assurance about whether the financial statements are free of material misstatement." What type of assurance is given?
A)Immediate
B)Limited
C)Reasonable
D)Absolute

Question

Quizplus · Accepted Answer

The scope paragraph of the standard unqualified auditor's report states that the audit is planned and performed to obtain reasonable assurance about whether the financial statements are free from material misstatement. This means that the auditor provides an opinion that is based on a high but not absolute level of assurance. The auditor has conducted a thorough examination, including the assessment of the internal controls and evidence gathering procedures, but it does not guarantee that the financial statements are completely error-free.

The Scope Paragraph of the Standard Unqualified Auditor's Report States