CA Inter P5 · Chapter 1 · Question 2 of 10
Reasonable assurance, as used in the Standards on Auditing, is best described as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) A high, but not absolute, level of assurance
Explanation
Reasonable assurance is a high but not absolute level of assurance, obtained when the auditor reduces audit risk to an acceptably low level. A moderate (limited) level of assurance expressed in negative form is characteristic of a review engagement, not an audit.
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