If the Auditor Has Obtained a Reasonable Level of Assurance

question 4

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 performing analytical procedures, then the auditor:

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

---

Definitions:

Potency

The power or influence something has to affect changes or produce a desired effect.

Effective

The ability to produce a desired or intended result, often used to describe strategies, processes, or actions that achieve their goals.

Team Empowerment

The process of giving team members autonomy, authority, and control over decision-making and resources, enhancing their efficacy and motivation.

Commitment

A state or quality of being dedicated to a cause, activity, or goal.