【正文】 vidence Determines correspondence Federal tax returns filed by taxpayer Information Internal Revenue Code and all interpretations Established criteria Report on tax deficiencies Report on results 169。2021 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 1 10 Learning Objective 2 Distinguish between auditing and accounting. 169。2021 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 1 11 Distinguish Between Auditing and Accounting Accounting is the recording, classifying, and summarizing of economic events for the purpose of providing financial information used in decision making. Auditing is determining whether recorded information properly reflects the economic events that occurred during the accounting period. 169。2021 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 1 12 Learning Objective 3 Explain the importance of auditing in reducing information risk. 169。2021 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 1 13 Economic Demand for Auditing Information risk reflects the possibility that the information upon which the business risk decision was made was inaccurate. Auditing can have a significant effect on information risk. 169。2021 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 1 14 Learning Objective 4 List the causes of information risk, and explain how this risk may be reduced. 169。2021 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 1 15 Causes of Information Risk ? Remoteness of information ? Biases and motives of the provider ? Voluminous data ? Complex exchange transactions 169。2021 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 1 16 Reducing Information Risk ? User verifies information ? User shares information risk with management ? Audited financial statements are provided 169。2021 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 1 17 Learning Objective 5 Describe assurance services and distinguish audit services from other assurance and nonassurance services provided by CPAs. 169。2021 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 1 18 Assurance Services An assurance service is an independent professional service that improves the quality of information for decision makers. Assurance services can be performed by CPAs o