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:

Formula Error

Occurs when a formula in a software application, like a spreadsheet, is incorrectly written or references invalid data, resulting in incorrect or unexpected outcomes.

Named Ranges

In spreadsheet applications, a feature that allows users to assign a memorable name to a particular range of cells for easier reference.

Formula Errors

Refers to mistakes or issues within computational expressions in spreadsheet software, causing incorrect results or failures.

PMT Function

It is a financial function that calculates the payment for a loan based on constant payments and a constant interest rate.