If the Auditor Has Obtained a Reasonable Level of Assurance

question 143

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) can significantly reduce other substantive tests.
• C) can write the engagement letter.
• D) needs to perform additional tests of controls so that the assurance level can be increased.

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Definitions:

Craft Shows

Events where artisans and craftsmen display and sell their handmade goods.

Split-Off Point

The stage in the production process where joint products can be recognized as separate products.

Financial Advantage

The benefit obtained in financial terms, giving an entity a superior position relative to competitors or market average.

Intermediate Products

Goods that are produced by a business as part of the production process of another final product or service.