The concept of _____ recognizes that a GAAS audit may fail to detect all material misstatements.
A)absolute assurance
B)due care
C)reasonable assurance
D)risk of material misstatement

Question

Quizplus · Accepted Answer

The concept of reasonable assurance recognizes that a GAAS audit may fail to detect all material misstatements despite the auditor exercising due care and obtaining sufficient appropriate audit evidence. This concept is based on the understanding that there are inherent limitations in any auditing process, which means that there is always a residual risk that material misstatements may go undetected. The auditor's goal is to minimize this risk to an acceptable level.

The Concept of _____ Recognizes That a GAAS Audit May