If the Auditor Has Obtained a Reasonable Level of Assurance

question 32

Multiple Choice

If the auditor has obtained a reasonable level of assurance about the fair presentation of the financial statements through understanding internal control, assessing control risk, testing controls and analytical procedures, then the auditor:

• A) can issue an unqualified opinion.
• B) needs to do additional tests of controls so that the assurance level can be increased.
• C) can significantly reduce the test of details.
• D) can write the engagement letter.

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Definitions:

Approach-Avoidance Conflict

A psychological conflict that occurs when a goal is both attractive and unattractive at the same time.

Seniority

The concept of prioritizing or giving privileges to individuals based on their length of service or tenure in a particular role or organization.

Avoidance-Avoidance Conflict

A psychological dilemma involving a choice between two negative outcomes or situations.

Frustration-Pressure Conflict

A psychological condition arising when a person is blocked from achieving a desired goal, leading to stress and anxiety.