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what is the difference between reasonabe and limited assurance engagement? can you explain the definitions and differences with examples?
Reasonable assurance = positive assurance.
Eg “The financial statements show a true and fair view…” The auditor is making a positive statement, but this can only ever be to a reasonable level because it would not be possible ever to be 100% certain without an huge amount of work.
Limited assurance = negative assurance.
Eg “The basis of the cash flow forecast is reasonable”. This isn’t saying it’s right (you couldn’t with a cash flow forecast because it depends on future events); it is limiting itself to saying that nothing wrong or unreasonable was discovered.
How would a report under ISAE 3000 (Revised) differ from one issued under the old standard?
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