Chapter 1: Assurance Services, Attestation Services and Financial Statement Audits

Question 1

Assurance Services

Answer 1

independent professional services that are intended to reduce uncertainty facing decision makers by improving the quality of information available to decision makers

Question 2

Relevance

Answer 2

extent to which piece of information capable of influencing decisions of reasonable decision makers, affected by nature and timing of information

Question 3

Nature of information

Answer 3

content of information

Question 4

Reliability

Answer 4

extent to which piece of information represents what it claims to represent, accuracy of information

Question 5

Attributes of high quality assurors

Answer 5

Independent, possess subject matter knowledge, and possess process expertise

Question 6

Independence

Answer 6

no economic or other interest that could create the temptation to be biased with respect to subject matter

Question 7

Independent in fact

Answer 7

truly unbiased with respect to subject matter

Question 8

Independent in appearance

Answer 8

appear to outside observers to be unbiased with respect to subject matter

Question 9

Factors affecting quality of information

Answer 9

relevance and reliability

Question 10

Attestation Engagement

Answer 10

attester gives opinion on extent to which piece or set of information created by someone else represents what it says it represents, focus on improving information reliability

Question 11

Information risk

Answer 11

risk that the information is not reliable and will lead to incorrect decisions