Within the Scope paragraph of the audit report, the auditor provides __________ that the financial statements are free from material misstatements.
A) Reasonable assurance.
B) Guaranteed assurance.
C) Auditing assurance.
D) Unqualified assurance.

Question

Quizplus · Accepted Answer

The auditor provides reasonable assurance that the financial statements are free from material misstatements, but does not provide a guaranteed assurance as there is always a risk of misstatements in financial accounting. The term "auditing assurance" is not commonly used and "unqualified assurance" is not a correct term.

Within the Scope Paragraph of the Audit Report, the Auditor