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Independent auditors do not provide complete assurance because their work is based on sampling rather than a full examination of every transaction. They assess the risk of material misstatements and use professional judgment to determine the extent of testing required. Additionally, inherent limitations exist, such as the potential for human error, fraud, and the subjective nature of accounting estimates, which further restrict the level of assurance that can be offered. Consequently, auditors provide reasonable assurance, indicating a high level of confidence but not an absolute guarantee.
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Why auditors need to be independent?
TO ENSURE THE FINANCIAL STATEMENTS GIVE A TRUE AND FAIR VIEW
Why do organisation require internal and external auditors?
auditor check reliability of financial data of the organization, and he give assurance about financial data of an organization.
Why is it not possible to give an absolute level of assurance in audit?
It is not possible to provide an absolute level of assurance in an audit due to inherent limitations in the audit process, such as the use of sampling rather than examining every transaction and the potential for human error or fraud that may go undetected. Auditors rely on evidence that is persuasive but not conclusive, as complete certainty is often impractical. Additionally, the complexity of financial reporting and the subjective nature of some estimates further complicate the ability to achieve absolute assurance. Thus, auditors provide reasonable assurance, which indicates a high level of confidence without guaranteeing absolute accuracy.
Why auditor cannot give absolute assurance?
Auditors cannot provide absolute assurance due to the inherent limitations of the audit process, such as the use of sampling rather than examining every transaction and the potential for human error or fraud that may go undetected. Additionally, financial statements are based on estimates and judgments that can vary significantly, adding uncertainty to the audit results. Consequently, auditors can only offer reasonable assurance that the financial statements are free from material misstatement.
Does a trial balance with both sides' totals matching give you 100 percent assurance that there are no errors in your accounting books?
Does a trial balance with both sides' totals matching give you 100% assurance that there are no errors in your accounting books
Why auditors need to be independent?
TO ENSURE THE FINANCIAL STATEMENTS GIVE A TRUE AND FAIR VIEW
Why do organisation require internal and external auditors?
auditor check reliability of financial data of the organization, and he give assurance about financial data of an organization.
Why is it not possible to give an absolute level of assurance in audit?
It is not possible to provide an absolute level of assurance in an audit due to inherent limitations in the audit process, such as the use of sampling rather than examining every transaction and the potential for human error or fraud that may go undetected. Auditors rely on evidence that is persuasive but not conclusive, as complete certainty is often impractical. Additionally, the complexity of financial reporting and the subjective nature of some estimates further complicate the ability to achieve absolute assurance. Thus, auditors provide reasonable assurance, which indicates a high level of confidence without guaranteeing absolute accuracy.
Why auditor cannot give absolute assurance?
Auditors cannot provide absolute assurance due to the inherent limitations of the audit process, such as the use of sampling rather than examining every transaction and the potential for human error or fraud that may go undetected. Additionally, financial statements are based on estimates and judgments that can vary significantly, adding uncertainty to the audit results. Consequently, auditors can only offer reasonable assurance that the financial statements are free from material misstatement.
What is absolute assurance?
Absolute Assurance is the highest level of assurance an auditor can give, if s/he checks each and every transaction. Therefore, absolute assurance is the level of assurance that can only be given if the auditor does not perform sampling testing. However, because of the time and costs involved, it is not feasible for an auditor to give 100% level of assurance. With much fewer costs and time involved, s/he will be able to provide around 60% level of assurance by providing what is called Reasonable Assurance.
What assurance does Athena give to telemachus?
That his father is not dead and is in Ithaca
Difference between assurance and insurance?
Assurance is a feeling you give someone when they are confident in you. Insurance is a financial instrument that protects you if you experience a loss.
What assurance does Scrooge beg the spirit to give him?
That the scene he has witnessed are scenes of what may be an not will be
Does a trial balance with both sides' totals matching give you 100 percent assurance that there are no errors in your accounting books?
Does a trial balance with both sides' totals matching give you 100% assurance that there are no errors in your accounting books
What is an effective sentence?
An effective sentence is one that shows the dependent and independent clauses that expresses the complete idea of the story. Basically, this sentence could give you a strong idea of what you are about to read.
What is an audit expectation gap?
Expectations gap === The expectation gap is the gap between the auditors' actual standard of performance and the various public expectations of auditors' performance (as opposed to their required standard of performance). Many members of the public expect that:auditors should accept prime responsibility for the financial statements,auditors 'certify’ financial statements,a 'clean’ opinion guarantees the accuracy of financial statements,auditors perform a 100% check,auditors should give early warning about the possibility of business failure, andauditors are supposed to detect fraud (See Wisconsin Law Journal article entitled, "Why Didn't Our Auditors Find the Fraud?").Such public expectations of auditors, which go beyond the actual standard of performance by auditors, have led to the term 'expectation gap’. Above retrieved from Abrema http://www.abrema.net/abrema/expect_gap_g.html Viper1
What is the best free government cell phone?
Assurance because they give you 250 minutes and 250 text
