Which of the following recognizes that an audit conducted under generally accepted auditing standards may not detect all material misstatements?
A) Absolute assurance.
B) Professional judgment.
C) Persuasiveness of audit evidence.
D) Reasonable assurance.

Question

Quizplus · Accepted Answer

Reasonable assurance recognizes that an audit conducted under generally accepted auditing standards may not detect all material misstatements, but that the auditor has obtained sufficient and appropriate audit evidence to reduce audit risk to an acceptably low level. A) Absolute assurance is not attainable, as there is always some level of risk involved in an audit. B) Professional judgment is important in the audit process, but does not specifically address the limitations of the audit. C) Persuasiveness of audit evidence is a factor in determining the sufficiency and appropriateness of audit evidence, but does not specifically address the limitations of the audit.

Which of the Following Recognizes That an Audit Conducted Under