Bookmarks by https://padlet.com/nabilahkamaludin/Bookmarks Made with charm en-us 2022-03-07 14:22:08 UTC 2026-01-04 22:28:13 UTC hello@padlet.com b. Compare the concept of information risk introduced in this chapter with the information risk problem faced by a buyer of an automobile. nabilahkamaludin https://padlet.com/nabilahkamaludin/Bookmarks/wish/2081760368 The concepts of information risk for the buyer of an automobile and for the user of financial statements are same because they are both concerned with the problem of unreliable information being provided. 
In the case of the auditor, the user is concerned about unreliable information being provided in the financial statements. The user of an automobile is likely to be concerned about the manufacturer or dealer providing unreliable in the financial statements. ]]> 2022-03-07 14:26:48 UTC https://padlet.com/nabilahkamaludin/Bookmarks/wish/2081760368 a. In what ways are the services provided by Consumers Union similar to assurance provided by CPA firms? nabilahkamaludin https://padlet.com/nabilahkamaludin/Bookmarks/wish/2083098598 The Consumers Union provides is testing different brands of customer production and the result will be published on public, in CPA assurance services is a independent that improve the quality and decision making and CPA firm issues the report that expresses a conclusion the realibility of an assertation for another party.]]> 2022-03-08 03:17:11 UTC https://padlet.com/nabilahkamaludin/Bookmarks/wish/2083098598 c. Compare the four causes of information risk faced by users of financial statements as discussed in this chapter with those faced by a buyer of an automobile. nabilahkamaludin https://padlet.com/nabilahkamaludin/Bookmarks/wish/2083101609 1. Complex exchange transaaction
-The exchange transactions between organizations have become increasingly complex and more difficult.
2. Biases and motives of the provider
-When goals are inconsistent with decision makers, the information  may be biased in favor of the provider.
3. Remoteness of information
-When information is obtained from others, the likelihood of it being intentionally or misstated increases.
4. Voluminous data
-Improperly recorded information may be buried in a large amount of other information.]]> 2022-03-08 03:18:56 UTC https://padlet.com/nabilahkamaludin/Bookmarks/wish/2083101609 d. Compare the three ways users of financial statements can reduce information risk with those available to a buyer of an automobile. nabilahkamaludin https://padlet.com/nabilahkamaludin/Bookmarks/wish/2083114095 1. User verifies information him or herself that can be btained by driving different automobiles, examining the specifications of the automobiles, talking to other users and doing research in various magazines.
2. User shares information risk with management. The manufacturer of a product has a responsibility to meet its warranties and to provide a reasonable product. The buyer of an automobile can return the automobile for correction of defects. In some cases a refund may be obtained.
3. Examine the information prepared by Consumer Reports. This is similar to an audit in the sense that independent party. The information provided by Consumer Reports is comparable to that provided by CPA firm that audited financial statements.]]> 2022-03-08 03:25:57 UTC https://padlet.com/nabilahkamaludin/Bookmarks/wish/2083114095 ALPHA 1-17 nabilahkamaludin https://padlet.com/nabilahkamaludin/Bookmarks/wish/2083132864 Consumers Union is a nonprofit organization that provided information and counsel on consumer goods and services. A major part of its function is the testing of different brands of consumer products that are purchased on the open market and then the reporting of the results of the tests in Consumer Reports, a monthly publication. Example of the types of products it tests are mis-sized automobile, residential dehumidifiers, flat screen TV and blue jeans.]]> 2022-03-08 03:37:20 UTC https://padlet.com/nabilahkamaludin/Bookmarks/wish/2083132864