2. Ahmed has recently graduated from UTAS-SHINAS with bachelor certificate. He starts work with an audit firm in Muscat. One day, his childhood friend Ali invited him on Friday for lunch. He hasnt seen each other for several years. Ali is surprised that Ahmed is now working as an auditor because he dreamed before to be a civil engineer. Unfortunately, the health condition of Ahmed didnt support him to be able to work on building construction sites. The conversation between the two friends turns to Ahmeds work and Ali wants to know how currently he does the audit job. In fact, Ali cannot understand why an audit is not a guarantee the company will succeed. He also thinks that company managers will lie to Ahmed as an auditor in order to protect

themselves. And as an auditor, Ahmed would have to assume that he cannot believe anything a company manager says to him.

Requirement:

On behalf of Ahmed, try to explain to Ali the concept of reasonable assurance, and how reasonable assurance is determined.

Explain why an auditor cannot offer absolute assurance.

Explain how the concept of professional skepticism is not the same as assuming that managers are always trying to deceive auditors.