External auditors provide "reasonable", as opposed to "absolute" assurance that the financial statements provide no material misstatement.

Question

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External auditors are required to provide reasonable, not absolute, assurance that the financial statements are free from material misstatement. This means that although auditors may miss some errors, they have conducted their audit in a way that provides a reasonable level of assurance that the financial statements are accurate.

External Auditors Provide "Reasonable", as Opposed to "Absolute" Assurance That