ACCA AA · Chapter 1 · Question 2 of 8
What level of assurance is provided by a statutory external audit of financial statements, and how is the conclusion expressed?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Reasonable assurance, expressed as a positive opinion
Explanation
An audit provides reasonable assurance, which is a high but not absolute level of assurance, and the auditor expresses a positive opinion on whether the financial statements give a true and fair view. Absolute assurance is never possible because of the inherent limitations of an audit. Negative (limited) assurance conclusions are used in review engagements.
More Audit and other assurance engagements MCQs
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