Auditing & Assurance › ISA Standards
What is the difference between reasonable assurance and limited assurance engagements?
IntermediateAnswer
A reasonable assurance engagement (like an audit) reduces engagement risk to an acceptably low level and gives a positive conclusion ('the statements are fairly presented'). A limited assurance engagement (like a review) performs fewer procedures, gives a negative-form conclusion ('nothing has come to our attention'), and provides a lower, but still meaningful, level of assurance.
Real-world example An audit gives a positive opinion, while a review of interim statements gives limited assurance in negative form.