The following questions concern assurance engagements or business advisory services. Choose the best answer.

a. The theoretical distinction between an assurance engagement and a business advisory engagement is that a business advisory engagement

(1)requires that the business disclose relevant criteria.

(2) may not have specified criteria but requires completion of a task.

(3) requires that audit level assurance be provided.

(4) is an engagement designed totally by the accountant.

b. One of the reasons that consumers may not purchase items using an electronic Web site is due to concern over having their credit card numbers compromised. The WebTrust principle that addresses this concern is

(1) business practice disclosure: the entity is to disclose its business practices for e-commerce transactions and execute the transactions using those disclosed business practices.

(2) transaction integrity: effective controls are maintained to ensure that customers' orders placed using e-commerce are completed and billed as agreed.

(3) information protection: effective controls are maintained to ensure that private customer information is protected.

(4) firewall usage: hardware and software firewalls are used to coordinate and manage Internet traffic.

c. The purpose of treasury risk management is to identify risks associated with

(1) the management of the liquid assets of an entity.

(2) the likelihood of the business continuing as a going concern.

(3) the inherent risk component of the audit risk model.

(4) automated information systems controls.