Which levels of assurance and opinion are provided for audits of financial statements?

When conducting audits of financial statements, auditors provide a reasonable assurance opinion, commonly referred to as a positive opinion. This means that the auditor has performed various procedures and evaluations to gain sufficient confidence that the financial statements are free from material misstatement. A reasonable assurance level indicates a high, but not absolute, level of assurance. This is fundamentally important in the context of audits because stakeholders, including investors and regulators, rely on the credibility and accuracy of financial statements when making decisions.

In providing a reasonable assurance opinion, the auditor typically expresses that the financial statements give a true and fair view of the company's financial position and performance in accordance with the relevant accounting framework. This level of assurance contrasts with limited assurance, which is generally associated with review engagements rather than full audits.

The notion of a negative opinion does not apply here, as auditors typically do not express a negative opinion in the audit context; rather, they would express concerns or findings, possibly leading to a qualified, adverse, or disclaimer of opinion, rather than a simple negative designation. Additionally, "no assurance with no opinion" is not characteristic of audits, as they are specifically designed to provide a level of assurance and an opinion on the financial statements.

Thus, the provision of a reasonable assurance with