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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
Now that we have dis...
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