1. The auditor’s responsibility: Material versus immaterial misstatement

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Reasonable Assurance: Reasonable assurance measures the level of certainty which getting at the ending of the audit. There is no literature where we can find reasonable assurance but it is probability which is less then absolute assurance and higher than a low level of assurance. But reasonable assurance it not a guarantor of the correctness of the financial statement.

Error Vs. Fraud: Generally, we find two types of misstatement which are- error and fraud. The misstatement can be material and immaterial. In financial statement error is unintentional and fraud is intentional misstatement.

Example: Unfortunately, record sale in Invoice

On the other hand, Fraud is a kind of mistakes which is doing intentionally. Suppose, buying a land they charge more as a land price which increase companies’ expenditure.

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