Question

Please provide answers next to the questions provided. Most questions can be answered with 3 or less sentences, but please do not exceed 5 sentences

What in your opinion is the biggest reason for information risk? Does auditing eliminate information risk specifically related to your previous answer? Explain your answers

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What is the difference between assurance services and non-assurance services that auditing firms can provide? Which category does attestation services belong to (i.e. assurance or non-assurance) and why is it unique from other services in that category?

Answer 1

The biggest reason for information risk ,in my opinion, is biases and motives of the information provider because all the information to the auditor comes through him initially. Yes , auditing can reduce such risk by relying more on the data collected and cross checking the information with the related persons.  

Assurance services are the services which are performed by independent auditor and include review of and giving an opinion on any financial statement, transaction etc.

Non assurance services are the services in which no review or opinion is to be given like preparation of financial statements.

Attestation services are assurance service as it assures the reliability of a certain statement or document.

Attestation validates that something is true and takes the responsibility of that while other assurance services include a detailed procedure of checking the financial statements, errors , risks etc and then give a opinion on the statements.