The concepts contained in table 11 are in fact

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Unformatted text preview: a “pass-fail” grade or would you like more details, such as costs of necessary repairs? As you can see, there are many factors to take into account in deciding on the nature and extent of the assurance service you want to buy. In Table 1–1 we have also listed what we think are desirable characteristics of the service provided by a house inspector. The concepts contained in Table 1–1 are in fact fundamental to most forms of inspection (and all financial statement audits). Certainly home inspections and other assurance services must focus on the assertions that are most important, and they must be conducted in a timely and cost-effective manner. Some assertions are more important than others because of their potential risk or cost. For example, a house inspector should recognize the signs that indicate an increased risk for a leaky roof. If those signs are present, he or she should investigate further, because damage caused by a leaky roof can be very expensive to repair. At the same time, just because the seller asserts that he or she recently lubricated all the door and window hinges doesn’t mean it would be wise to pay the inspector to validate thi...
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This note was uploaded on 12/08/2012 for the course ACCT 564 at Washington University in St. Louis.

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