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 (A)</p> Signup and view all the answers

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