Your hair stylist is complaining about all of the accountants she has to work with recently the government has been in to look at her income taxes, the bookkeeper the salon typically employees has been sick so they have had to hire someone else, and now you have been hired by the salon to conduct an audit. Using the definition of an audit, explain to the hair stylist what you will be doing with the financial statements and how that the work youre doing differs from the work of the other accountants.

Hint: Describe the objectiveof each of the accountants and how the work you are performing differs.

1. Describe information risk and explain the different types of information risk?
2. Who are the three parties involved in an engagement and what are the roles of each party?
3. When asked by a client which type of engagement they should have conducted (i.e. an audit, review or compilation (notice-to-reader) engagement), what factors should you take into consideration when making your recommendation, and how do those factors influence your recommendation?