• You are the audit manager at Henrik 's car Wash (Pty) Ltd. During the discussion of the audit plan with the board members, the newly appointed non-executive director indicated that she is not comfortable with the proposed audit scope as she requires an explicit statement from the external audit team that all transactions and balances have been correctly accounted for.
• 
  
• Explain to the board of directors the concepts of reasonable assurance and limited assurance and how it is applied in an external audit engagement?

Answer rating: 100% (QA)

Reasonable assurance and limited assurance in external audit engagements Reasonable assurance is the highest level of assurance that an auditor can provide It means that the auditor has obtained suffi... View the full answer