Nature and Objectives of Audit Quiz

Reasonable assurance is less reliable than limited assurance

Reasonable assurance is only applicable to internal audits, while limited assurance is applicable to external audits

Reasonable assurance provides a moderate level of assurance, while limited assurance provides a high level of assurance

Reasonable assurance provides a high level of assurance, while limited assurance provides a moderate level of assurance (correct)

To prepare annual reports for the company

To determine the financial position of the company

To ensure the quality of audit work and to provide guidelines for conducting audits (correct)

To set limitations on the scope of audit work

Inability to detect fraud and inability to assess future events

Reliance on selective testing and the potential for human error (correct)

Lack of independence and lack of professional skepticism

Inability to understand the company's industry and inability to communicate findings effectively

<p>Providing credibility to information or assertions made by management for third parties</p> Signup and view all the answers

<p>To express an opinion on the financial statements based on an evaluation of evidence</p> Signup and view all the answers