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SSC Audit Tax Finance P-II QUESTION #6215
Question 1
An auditor uses $n$ samples to test a population $N$. The limitation that audit evidence is 'Persuasive' rather than 'Conclusive' is primarily due to:
  • The use of testing and inherent limitations of internal controls✔️
  • The auditor's lack of professional skepticism
  • The requirement of the Companies Ordinance 1984
  • The use of KaTeX in mathematical reporting
Correct Answer Explanation
Reasonable assurance is limited because of the use of testing (sampling) and the persuasive nature of evidence, meaning it leads to an opinion rather than absolute proof.