Systematic and reliablethe service is based on a

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Unformatted text preview: iced—the costs of the services must not exceed the benefits. For this to occur the service provider will likely need to focus attention on the most important and risky assertions and likely can’t provide absolute assurance. • Complete—the service addresses all of the most important and risky assertions made by the seller. • Effective—the service provides some degree of certainty that it will uncover significant risks or problems. • Systematic and reliable—the service is based on a systematic process, and the conclusions are based on reliable evidence. In other words, another comparable inspector would likely find similar things and come to similar conclusions. • Informative—the service provides a sense for how likely mechanical or structural failure is in the near future and provides an estimate of the cost to repair known defects or failures. mes25435_ch01_001-032.indd 9 26/05/11 9:24 PM Confirming Pages 10 Part 1 Introduction to Assurance and Financial Statement Auditing Relating the House Inspection Analogy to Financial Statement Auditing Now that we have dis...
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