$.$ Identify ways in which a financial statement audit adds value for clients.

Financial statement audits reduce

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business risk

information risk

the risk$-$free interest rate

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which lowers borrowing costs. An audit also provides assurances to management about information used for

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decision$-$making purposes

employee staffing purposes

information technology

internal controls

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and may also provide recommendations to improve

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compliance with federal tax laws

efficiency or effectiveness of operations

provider biases

state regulatory compliance

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Part $2$

Requirement b$.$ List services other than audits that Czarnecki and Hogan likely provides. $($Complete all input$$ fields.$)$

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Part $3$

Requirement c$.$ Assume Czarnecki and Hogan has hired you as a consultant to identify ways in which they can expand their practice. Identify at least one additional service that you believe the firm should provide and explain why you believe this represents a growth opportunity for CPA firms.

There are considerable opportunities for growth in new types of information that require

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assurance

auditing

tax consulting

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such as

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environmental responsibility reporting

securities trading

tax services

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$$Additionally$,$ opportunities also exist in consulting and

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accounting services

broker$-$dealer services

management advisory services

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such as assistance with the adoption of

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generally accepted auditing standards

International Financial Reporting Standards

securities trading standards

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