Jargon

Question 1

Reasonable Assurance

Answer 1

Is a high level of assurance.
It is obtained when the auditor has obtain sufficient appropriate audit evidence to reduce audit risk to an acceptably low level.

You can’t get an 100% accurate report.

You don’t need to check every transaction anymore. - time consuming if you do

Question 2

Audit Risk

Answer 2

Is the risk that you give the wrong opinion.

Question 3

Sufficient Appropriate Audit Evidence

Answer 3

Means that there is enough appropriate evidence.