A practitioner is engaged to perform two different types of assurance engagements—one requiring a high level of assurance and another requiring a…

CA Intermediate · Auditing and Ethics · MTP · September 2026
A practitioner is engaged to perform two different types of assurance engagements—one requiring a high level of assurance and another requiring a moderate level of assurance. While planning the work, the practitioner evaluates the nature, timing and extent of procedures, as well as the evidence required and the form of conclusion to be expressed in each engagement. The audit team discusses the key differences between a reasonable assurance engagement and a limited assurance engagement in terms of procedures performed, evidence obtained and conclusions expressed. Which of the following statements is not true regarding the distinction between a reasonable assurance engagement and a limited assurance engagement?
(A) (A) A reasonable assurance engagement involves more extensive and detailed procedures compared to a limited assurance engagement.
(B) (B) A reasonable assurance engagement involves obtaining sufficient appropriate evidence, whereas a limited assurance engagement involves obtaining only limited evidence.
(C) (C) A reasonable assurance engagement provides a higher level of assurance than a limited assurance engagement.
(D) (D) A reasonable assurance engagement involves drawing reasonable conclusions whereas limited assurance engagement draws limited conclusions.

Suggested Answer and Working Notes:

Correct Answer: Option (B)

(B) A reasonable assurance engagement involves obtaining sufficient appropriate evidence, whereas a limited assurance engagement involves obtaining only limited evidence.

Topics: Nature, Objective and Scope of Audit

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