You have recently graduated from the colleges of technology and started working as an auditor in an Auditing firm. You meet your old college friend in a hotel, you have not met him from past 5 years. Your friend is surprised that you are working for auditing firm as an auditor as your childhood dreams. While talking to your friend it turns to about your work and your friend also wants to know how your work is. Your friend thinks that anyone can do the audit because its only valuation and verification of books of accounts and invoices. Your friend also think that company management can easily create falsification of accounts and they can easily use the company assets for their own use. As an auditor you cannot believe then whether they provide proper information about the company accounts, financial statements. Required: 1. From the above situation explain how audit assurance is linked with verification and valuation of assets and liabilities? explain to him with proper examples by selecting a company how reasonable assurance obtained. 2. For the above case, explain to your friend that why an auditor cant gets absolute assurance on financial statement? 3. Explain to your friend about the scope of the audit