- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 1. Introduction to Financial Statement Analysis
- Subject 3. Regulated Sources of Information
CFA Practice Question
Which of the following statements best describes the level of accuracy provided by a standard audit report with respect to errors? The audited financial statements are ______
B. reasonably assured to be free of all errors.
C. reasonably assured to be free of material errors.
A. fully assured to be free of material errors.
B. reasonably assured to be free of all errors.
C. reasonably assured to be free of material errors.
Correct Answer: C
Audits provide reasonable assurance that the financial statements are fairly presented, meaning that there is a high degree of probability that they are free of material error, fraud, or illegal acts.
User Contributed Comments 2
| User | Comment |
|---|---|
| prashgs | what is a material error? |
| accyyy | A major error. |