A radio advertisement for a new software management product included the following statement: “According to ITR, Knovel’s new software product will pay back in three months.” ITR is an information technology (IT) research firm that is hired by various companies in the IT industry to provide reports on IT usage and sales in the IT market. As soon as ITR’s president heard the ad on his car radio, he immediately phoned Knovel and told them to stop using the ad.

Required:

Discuss whether ITR’s statement is the result of an assurance engagement. Consider the parties involved, the subject matter, the accountability relationships, the nature of the report, and any other relevant aspects of the situation. Why do you think ITR’s president wanted the ad stopped?