alleryStart learning →What assurance can a financial statement audit give?
AAbsolute assurance of no error
BGuaranteed detection of all fraud
CReasonable assurance of no material error
DOnly a limited review of selected items
Answer & Solution
Correct answer: C. Reasonable assurance of no material error
Because of constraints such as cost and sampling, an audit gives reasonable, not absolute, assurance that statements are free from material error.
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