most general purpose frameworks, that opinion is on whether the financial statements be presented fairly, in all material respects, in accordance with the framework. An audit conducted in accordance with PSAs and pertinent ethical petitionments enables the auditor to form that opinion.
As the basis for the auditors opinion, PSAs require the auditor to obtain reasonable assumption about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error. level-headed assurance is a high level of assurance. It is obtained when the auditor has obtained qualified appropriate audit evidence to reduce audit danger (i.e., the risk that the auditor expresses an inappropriate opinion when the financial statements are materially
misstated) to an acceptably low level.
However, reasonable assurance is not an domineering level of assurance, because there are inherent limitations of an audit which will in most of the audit evidence on which the auditor draws conclusions and bases the auditors opinion being persuasive instead than conclusive.
The PSAs contain objectives, requirements and application and some other explanatory material that are designed to support the auditor in obtaining reasonable assurance. The PSAs require that the auditor exercise passe-partout judgment and maintain professional skepticism throughout the planning and performance of the audit and,
among other things:
Identify and assess risks of material misstatement, whether due to fraud or
error, base on an understanding of the entity and its environment, including
the entitys internal control.
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