What are the three choices for the Statement of Assurance?

What are the three choices for the Statement of Assurance?

• A. Provisional, Definitive, No Assurance
• B. Unqualified, Qualified - exceptions explicitly noted, No Assurance
• C. Acceptable, Conditional, Not Acceptable
• D. Positive, Neutral, Negative

Answer: (B)

The question is about the levels of assurance an auditor can express in the Statement of Assurance. The strongest form is unqualified, meaning the financial statements are presented fairly in all material respects in accordance with the applicable accounting framework. If there are material, but not pervasive, exceptions, the auditor issues a qualified opinion and explicitly notes those exceptions. If the auditor cannot obtain sufficient evidence or the issues are pervasive, they cannot provide an overall opinion and issue no assurance (a disclaimer). So the three terms that correctly reflect the possible outcomes are unqualified, qualified with explicit exceptions, and no assurance. The other groupings use terms that don’t align with standard audit opinion categories.

The question is about the levels of assurance an auditor can express in the Statement of Assurance. The strongest form is unqualified, meaning the financial statements are presented fairly in all material respects in accordance with the applicable accounting framework. If there are material, but not pervasive, exceptions, the auditor issues a qualified opinion and explicitly notes those exceptions. If the auditor cannot obtain sufficient evidence or the issues are pervasive, they cannot provide an overall opinion and issue no assurance (a disclaimer).

So the three terms that correctly reflect the possible outcomes are unqualified, qualified with explicit exceptions, and no assurance. The other groupings use terms that don’t align with standard audit opinion categories.