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.

---

Definitions:

Bending Light Rays

The refraction of light that occurs when its speed changes as it passes from one medium to another, causing the light to change direction.

Fatigue

A state of physical or mental weariness resulting from exertion, reducing efficiency and capacity for work.

Action Potentials

Rapid and temporary electrical impulses that travel across the membrane of nerve cells, facilitating neuronal communication.

Synapse

The junction between two neurons or between a neuron and muscle fiber, where electrical or chemical signals are transmitted.