Statistics plays a major role in many aspects of our lives.

It is used in sports, for example, to help a

general manager decide which player might be the best fit for a team. It is used in politics to help
candidates understand how the public feels about various policies. And statistics is used in medicine to
help determine the effectiveness of new drugs. Used appropriately, statistics can enhance our
understanding of the world around us. Used inappropriately, it can lend support to inaccurate beliefs.
Understanding statistical methods will provide you with the ability to analyze and critique studies and
the opportunity to become an informed consumer of information. Understanding statistical methods
will also enable you to distinguish solid analysis from bogus “facts.”

Which of the following best describes assurance services?

a. Independent professional services that are intended to enhance the credibility of

information to meet the needs of an intended user

b. Services designed to express an opinion on the fairness of historical financial statements

based on the results of an audit

c. The preparation of financial statements or the collection, classification, and summarization of

other financial information

d. Services designed for the improvement of operations, resulting in better outcomes

2. Which of the following engagements is covered by the Framework for Assurance Engagements?

a. Consulting engagements

b. Agreed upon procedures

c. Preparation of tax returns

d. Independent financial statements audit

3. Assurance services differ from consulting services in that they (I) focus on providing advice (II)

involve monitoring of one party by another

a. I only

b. II only

c. Both I and II
d. Neither I nor II