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:

Profiles

Descriptive summaries or overviews that outline characteristics, qualities, or conditions of individuals, groups, or entities.

Alkaline

Having a pH greater than 7, typically describing a basic substance as opposed to an acidic one.

Humus

Organic component of soil formed by the decomposition of leaves and other plant material, rich in nutrients.

Deciduous Forest Soil

The fertile, nutrient-rich soil found in forests that lose their leaves seasonally, characterized by rich organic matter and biodiversity.