Which of the Following Is True of Assurance Services

question 78

Multiple Choice

Which of the following is true of assurance services?

• A)Both attestation and auditing services fall under the term of assurance services.
• B)The term information refers to subject matter that is an entire system, not standalone data.
• C)The services are performed by someone who was involved with the creation of the information.
• D)The intended user is an independent Certified Public Accountant qualified to perform the auditing service.

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Definitions:

Benefit

An advantage or positive outcome gained from something, often used in the context of employment perks or features of a product or service.

Moral Hazard

Moral hazard occurs when one party in a transaction takes on more risk because they know that someone else will bear the cost of those risks.

Transaction

The act of conducting business between two or more parties, often involving the exchange of goods, services, money, or information.

Moral Hazard

A situation in which one party is more likely to take risks because they know that another party bears the consequences or costs of those risks.