Reasonable & Limited Assurance Flashcards
1
Q
What is reasonable assurance?
A
A reasonable assurance engagement provides a high, but not absolute level of assurance.
A significant of testing and evaluation is required to support the conclusion. Therefore the external audit is a key example.
Reasonable assurance would usually be expressed in a positive form.
2
Q
What is limited assurance?
A
Limited assurance is a lower level of assurance. The nature, timing and extent of the procedures would be limited compared with what is required in a reasonable assurance engagement.
The procedures performed should be planned to obtain a level of assurance which is meaningful in the practitioners professional judgement.
This would usually be expressed in a negative form of words.
