CFA Practice Question

There are 86 practice questions for this study session.

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 ______

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.
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