ACCT 497 Chapter Notes - Chapter 1: Accounts Payable, Income Statement, Assurance Services
1 Feb 2017
School
Department
Course
Professor
Document Summary
Business risk: the risk that an entity will fail to meet its objective. Four environmental conditions increase user demand for relevant, reliable information: complexity. Events and transactions in today"s global business environment are numerous and often very complicated: remoteness. Decision makers are usually separated from current and potential business partners not only by a lack of expertise but also by distance and time: time-sensitivity. Today"s economic environment requires businesses, investors, and other financial information users to make decisions more rapidly than ever before: consequences. Decisions can involve significant investment of resources. Important that reliable information, obtained and verified by information professionals, is an absolute necessity. Information risk: the probability that the information circulated by a company will be false or misleading. Assurance: the lending of credibility to information. Attestation: the lending of creditability to assertions made by a third party.
