VAN Technologies, a value-added network service provider, links subscribing electronic data integration (EDI) networks, receives network transmissions from trading partners, translates transmissions into an ANSI 12 format, and functions as an electronic post office by transmitting and acknowledging orders electronically. Owing to widespread reports of data-security problems in EDI networks, several subscribers have approached management, questioning VAN's controls over hacker attacks, transmission failures, identification authentication, and infiltration of confidential data files. In response, management asks an engagement partner in Settles & Weick, LLP to propose on offering assurances that would quiet subscribers' fears.

Required:

1. Is the engagement an assurance service engagement or an attestation service engagement? Explain.

2. Discuss the barriers the engagement partner ought to consider before proposing on the engagement.