Question 1 The statement below is from ISA 200. ISAs require auditors to obtain reasonable assurance...

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Question 1 The statement below is from ISA 200. "ISAs require auditors to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatements, whether due to fraud or error....... this is assumed when the auditor has obtained sufficient appropriate evidence to reduce audit risk....... and to an acceptably low level." [ISA 200] Required: Explain what is meant by the term 'material misstatements and discuss the different levels of 'assurance' auditors can provide. Question 2 The audit expectations gap is inevitable given the difference between society's expectations and perceptions of auditors and the legal and professional responsibilities/duties of auditors Discuss 10 marks 10 marks Question 1 The statement below is from ISA 200. "ISAs require auditors to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatements, whether due to fraud or error....... this is assumed when the auditor has obtained sufficient appropriate evidence to reduce audit risk....... and to an acceptably low level." [ISA 200] Required: Explain what is meant by the term 'material misstatements and discuss the different levels of 'assurance' auditors can provide. Question 2 The audit expectations gap is inevitable given the difference between society's expectations and perceptions of auditors and the legal and professional responsibilities/duties of auditors Discuss 10 marks 10 marks