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Auditing and Assurance

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What are the advantages a firm gains by using auditing and assurance services? How might you use these advantages to promote the auditing and assurance division within a company?

Compare the relationship between the auditor, client, and external users. How do professional standards for CPAs govern these relationships?

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When a firm uses auditing and assurance services, it increases the quality of the firm's information which acts as an asset based on management's goals. If one of the goals of management is to obtain additional capital by securing debt financing or through equity financing, the investment is seen as a higher quality because the firm has made use of auditing and assurance services. When a firm uses these types of services, the firm is essentially having an unbiased party attest to the fact that the financial statements or documents being audited are in acceptable, reliable order and, more importantly, that the related financial information presented is ...

Solution Summary

This solution explains the advantages a firm gains by using auditors and assurance services and how you might use these advantages to promote the auditing and assurance division within a company. I also compare the relationship between auditor, client, and external users, and how professional standards for CPAs govern these relationships.

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