Auditing Case Study

1) “Assurance Services” is a professional service provided by Certified Public Accountants, the objective of which is to provide accurate information, in this example, information about the Spot Cards. Assurance Services give reliable opinions about the particular subject in order to reduce information risk (risk that comes from incorrect information).

2) The use of electronic payment technology offers particular benefits and costs. Below is an account of the benefits and cost to various parties.

* Benefits and Costs to Stadium Vendors

The use of electronic payment provides more accurate information to vendors for examining their businesses.

The system records information like the card number, location code and date and time of transaction including the products sold.

As such, the vendors are able to observe and follow detailed information about sales volume of each and every item he has in stock.

By using this technology, the vendor is now able to keep records of his items, financial reports and his work becomes precise enabling more profits.

* Benefits to fans at the stadium.

The fans are able to use their Spot Cards to make purchases instead of walking with cash. The stadium has ATM-like machines which allow them to transfer money onto their electronics cards.

They can also buy cards with cash at the stadium if ever they do not possess their own cards.

In order to keep track of their balance there are card readers located in the stadium to check balance on their cards.

Even after purchase is made at a vendor, the fans are able to view the amount to be deducted from their cards before transaction is completed.

* Benefits to First Union

The First Union Bank receives a commission from every transaction of the Spot Card in use. Also, the Bank collects money that remains in any unused card after two years. In order to increase their sale, First Union sells player signature Spot Card along with pictures of Jaguar Player for extra...