Describe what is meant by an overall level of assurance. Explain why each of the following statements is true:

a. A CPA firm should attempt to achieve the same overall level of assurance for all audit clients with approximately the same circumstances.

b. A CPA firm should increase the overall level of assurance for audit clients where external users rely heavily upon the statements.

c. A CPA firm should increase the overall level of assurance for audit clients where there is a reasonably high likelihood of a client’s filing bankruptcy.

d. Different CPA firms should attempt to achieve reasonably uniform overall levels of assurance for clients with similar circumstances.