ABSTRACT
Introduction To live is to make decisions. Informed decisions should be based on information that is objective, relevant, reliable, and understandable. But how does an individual making a decision know that he or she has reliable information? In a nutshell, this question captures the nature of the problem that justi es the study of auditing and assurance. In today’s global business environment in which all sorts of data is transmitted on a real-time basis, decision makers worry that the information they have available will not be objective, relevant, reliable, or understandable. Indeed, information can be incorrect because someone makes an accidental mistake, or it can be intentionally manipulated for someone’s bene t. We have seen in the accounting crisis at the turn of the century and continuing into the scal crisis that has plagued the world since 2007-08, individuals and organizations who rely on information that is misleading, incomplete, or confusing may make decisions that lead to unexpected and/or unacceptable outcomes. These outcomes can range from bankruptcy at the individual or rm level to a freeze of the global economy with a lack of trust in counterparties to a transaction.
