Why reasonable assurance does not guarantee the absence

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Reference no: EM133903575

Problem

You are a junior accountant assigned to an audit of a publicly traded company. The audit team lead wants you to prepare a briefing to address three topics that newer members of the board of directors want to understand better. The topics include assertions (management and auditor), variances, and obtaining evidence to reach reasonable assurance. Get the instant assignment help. The new board members expressed concerns that the audit engagement did not guarantee there is no fraud and wondered why the auditors are not responsible for the financial statements. Your task is to explain assertions, variances and why reasonable assurance does not guarantee the absence of fraud.

Reference no: EM133903575

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Why reasonable assurance does not guarantee the absence : Your task is to explain assertions, variances and why reasonable assurance does not guarantee the absence of fraud.

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