An audit made in accordance with GAAS provides strong assurance that all illegal acts will be detected.

Question

Quizplus · Accepted Answer

An audit conducted in accordance with Generally Accepted Auditing Standards (GAAS) is designed to provide reasonable assurance about whether the financial statements are free of material misstatement, whether caused by error or fraud. However, it does not guarantee that all illegal acts, especially those not directly related to financial statement misstatements, will be detected.

An Audit Made in Accordance with GAAS Provides Strong Assurance