10 Questions
What determines whether evidence is sufficient in an assurance engagement?
The appropriateness and sufficiency of the evidence
What is the primary difference between reasonable assurance and limited assurance?
The level of evidence obtained to support the opinion
Why can a surveyor only give limited assurance if they are only given access to part of the building?
Because they cannot inspect the entire property
What is the purpose of obtaining evidence in an assurance engagement?
To support the opinion given by the practitioner
What is the characteristic of reasonable assurance?
A high level of assurance that is less than absolute assurance
What is the primary factor that determines the level of assurance in an assurance engagement?
Type of opinion being given
What is the relationship between the level of assurance and the type of engagement?
A lower level of assurance is obtained for a limited assurance engagement
What is the characteristic of a negative assurance statement?
It suggests that matters could exist that cause the statement to be unreasonable
What is the purpose of seeking evidence in an assurance engagement?
To conclude whether the report issued by the Chairman is reasonable or not
What is the difference between a positive and negative assurance statement?
A positive statement is more certain, while a negative statement is less certain
Test your understanding of auditing concepts, specifically reasonable assurance and limited assurance, and how they relate to engagement risk and conclusion expression. Identify the key differences between these two important concepts in the auditing process.
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