Ahmed is a CPA who is engaged to perform a variety of services to both audit and non-audit clients. Most of his work involves financial statements audits for publicly traded companies, other large companies, many small companies and even non-commercial organizations. However, some clients seek a variety of other non-audit services. These services differ widely in terms of the nature and purpose of providing the service. Differences also exist as to the amount of evidence used, costs incurred and accordingly the level of assurance provided on the reliability of information. Ahmed believes that auditing careers provide an excellent experience in risk assessment and management techniques. He has an opportunity for professional development and he also believes that his employment is interesting and meaningful. Working as a CPA, Ahmed has a wide range of opportunities allowing for personal growth. Although Ahmed, as a CPA, can perform any type of audit, some audit engagements are restricted to certain types of auditors other than the CPA. Following are a variety of services and audit engagements performed by different types of auditors. Based on your auditing background, you are required to help the auditor in analyzing each of the following separate individual cases related to different types of engagements by answering the following questions. Which of the following services can be classified as an assurance service? A. The auditor verifies management's assertion about its disclosure of electronic commercial practices and evaluates the security of electronic data posted on the company's website. B. The auditor assesses the company's products for compliance with quality control standards required by the ISO 9000 certification. C. Any service that requires a CPA firm to issue a report about the reliability of an assertion that is made by another party D. All of the above. To do an audit of a company's financial statements, there must be several key elements and procedures including all of the following except: A. Quantitative information in a verifiable form that can be checked by the auditor. B. Some standards or criteria by which the auditor can evaluate the information, which are generally accepted accounting principles or International Financial Reporting Standards. c. Determining the degree of correspondence between information and established criteria using some kind and amount of evidence. D. None of the above. Which of the following statements is not true about auditing and information risk? A. Auditing has no effect on either the risk-free interest rate or business risk, but it can significantly reduce information risk. B. Audited financial statements may not meet the needs of certain users and the cost of reducing information risk may be higher than the benefits in some situations. C. Audited financial statements can usually reduce information risk sufficiently to satisfy users at reasonable cost. D. None of the above