International Standard on Auditing 200 (ISA 200) states that, the overall objectives of the Auditor in conducting an audit of financial statements is to obtain reasonable assurance on whether the financial statements as a whole are free from material misstatement.

Required a) Explain the concept of reasonable assurance, and how reasonable assurance is determined. (7 marks)

b) Explain why an auditor cannot offer absolute assurance.(7 marks)

c)Explain the concept of professional scepticism and how it is not the same as assuming that managers are always trying to deceive auditors.