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In search of meaning

Exploring non-financial statement assurance? The differences between reasonable and limited assurance can create confusion, so John Ward offers some clarification

In its International Framework for Assurance Engagements (see box on page 10) the International Federation of Accountants (IFAC) defines two different levels of assurance: reasonable and limited. But what does each type of assurance mean? Is limited assurance the same as a half-year review of financial statements? Here I provide an explanation of the differences between reasonable and limited assurance. Reasonable assurance is defined by the IFAC assurance framework as when the risk of a material misstatement to a subject matter has been reduced to a low level.

This is an extract from an article in the March 2015 edition of Audit & Beyond, the magazine of the Audit and Assurance Faculty.

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