Question

Explain the difference between Limited and Reasonable Assurance, also give one example of each.
Need Examples and evaluated answer.

Answer 1

The high level of assurance provided, the greater the confidence in the relating matter

The table below outlines the differences between the procedures for a reasonable and a limited assurance engagement:

Type of engagement	Objective
Reasonable assurance engagement	It is a positive form of expression of the auditor’s conclusion. reduction in AE risk to an acceptably low level Reasonable assurance means a high but not absolute level of assurance.
Limited assurance engagement	A reduction in assurance engagement risk to a level that is acceptable in the circumstances of the assurance engagement but where that risk is greater than for a reasonable assurance engagement, as the basis for a negative form of expression of the auditor’s conclusion.

• For example:
  • In limited assurance the assurance practitioner more emphasis on enquiries of the entity’s personnel and analytical procedures; and relatively less emphasis, if any, on tests of controls and obtaining evidence from external sourceserloo than would be the case for a reasonable assurance engagement that means controls may be forgone or ovk

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