Chapter 1: Auditing and Assurance Services correctly answered to pass 2023

Chapter 1: Auditing and Assurance Services correctly answered to pass 2023 Business Risk - correct answer the risk that an entity will fail to meet its objectives. To minimize these risks and take advantage of other opportunities decision makers demand timely, relevant, and reliable information. Four environmental conditions increase user demand for relevant, reliable information: - correct answer (1) Complexity: events and transactions are often numerous and very complicated. (2) Remoteness: decision makers are usually separated from current and potential business partners not only back a lack of expertise but also distance and time. (3) Time-sensitivity: business decisions are required to be made more rapidly. (4) Consequences: reliable information, obtained and verified by informational professionals, is an absolute necessity. Information Risk - correct answer the probability that the information circulated by a company will be false or misleading. Assurance/ Assurance Services - correct answer lending of credibility-depend on information professionals to serve as independent and objective intermediaries who will lend credibility to the information. AICPA defines as independent professional services that improve the quality of information, or its context, for decision makers. Attestation/ Attestation Engagement - correct answer when the assurance is provided for specific assertions made by management