Reasonable assurance means that audit risk has been reduced to an acceptably low level. Because of sampling, the inherent limitations of internal control and the subjectivity of management estimates, no audit can provide absolute assurance.
Reasonable assurance is expressed in positive terms ("…present fairly"). Reasonable assurance engagements can also be performed on other information such as sustainability reports.
Related terms
Limited assuranceA level of assurance based on narrower procedures than reasonable assurance and expressed in negative terms.Audit riskThe risk that the auditor expresses an inappropriate opinion when the financial statements are materially misstated.Independent auditReasonable assurance provided by an independent auditor on whether the financial statements are presented fairly, in all material respects, in accordance with the applicable financial reporting framework.Assurance engagementAn engagement providing assurance, against specified criteria, on a subject matter other than an audit or review of historical financial information.Adverse opinionThe opinion in which the auditor states that the financial statements are not presented fairly, where misstatements are both material and pervasive.Agreed-upon proceduresAn engagement in which the practitioner performs procedures agreed with the entity and, where relevant, a third party, and reports only the findings without providing assurance.
Last updated: October 22, 2026 · This definition is for general information only.