Assurance service is an independent professional service, typically provided by Chartered

orCertified Public Accountants, with the goal of improving the information or the context of the
information so that decision makers can make more informed, and presumably better, decisions.
Assurance services provide independent and professional opinions that reduce the information
risk (risk that comes from incorrect information).[1]

Contents

1 Types

2 References

3 Further reading

4 External links

Types
Audits can be considered a type of assurance service. However, audits are only designed to test
the validity of the financial statements. Under an assurance engagement, accountants can provide
a variety of services ranging from information systems security reviews to customer satisfaction
surveys. Unlike audit and attestation services that are often highly structured, assurance services
tend to be customized and implemented when performed for a smaller group of decision makers
within the firm. Often managers must make decisions on things they have incomplete or
inaccurate data for, and decisions made on such data may be incorrect and increase the overall
business risk. In this respect, assurance services can be very helpful in reducing such risk and
help managers or decision makers make more confident decisions within a given firm. This is
similar to audits in that investors will choose to invest in a firm that is publishing financial
statements that have been audited by an independent firm.
Assurance services can test financial and non-financial information; due to this assurance
services can be classified as consulting services. However, assurance services are not considered
consulting[citation needed] because in consulting services, an accountant generally uses their
professional knowledge to make recommendations for a future event or a procedure, such as the
design of an information system or accounting control system. In contrast, assurance services are
designed to test the validity of past data of the business cycles. Although there is no boundary to
what an accountant can test in assurance services, a practitioner is discouraged from accepting an
assurance engagement in which his firm or previous experiences does not provide them with
enough expertise to make a professional opinion on the given data.[2][3]
Assurance services done by accountants differ from nonassurance services.
Other examples of assurance services include:

Accounts receivable review

Business risk assessment

Comfort letter

Customer satisfaction survey

Information systems security review

Internal audit outsourcing

Medical billing services

Assurance Services Versus Attestation Services

August 2008

537 Words

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Page 1 of 3
Assurance refers to the auditors satisfaction as to the reliability of an assertion
being made by one party for use of another party.
Assurance engagements or services are intended to enhance the credibility of
information about a subject matter by evaluating whether the subject matter
conforms in all material respects with suitable criteria. Its objective is to provide
either a high or moderate level of assurance.
Assurance services pertain to the independent professional services designed to
improve the quality of information, or its context, for decision making. Assurance
services are broader in scope than attestation.
Attest engagement or attestation services as defined by AICPA: One in which the
practitioner is engaged to issue, or does issue a written communication, like an
examination, a review, or an agreed-upon procedures report that expresses a
conclusion about the reliability of a written assertion that is the responsibility of
another party.
TYPES OF ASSURANCE SERVICES

1.Audits.
2.Reviews.
Other assurance engagements:
3.Comprehensive risk assessments.
4.Business performance measurement.
5.Electronic commerce.
6.Systems reliability.
7.Elder care services.
8.Policy compliance.
9.Trading partner accountability.
10.Mergers and acquisitions.
Assurance Services vs. Attestation Services
1.Assurance services are three-party contracts in which assurors improve or report
on the quality of information. Assurors include public accounting firms, consulting
firms and independent nonprofit institutions.
2.Attestation services are type of assurance services in which the accounting firm
issues a written communication that expresses a conclusion with respect to the
reliability of a written assertion that is the responsibility of another party. Attestation
services include financial statements audit, review and other attestation services
(reports on internal control, review of prospective financial...
Continues for 2 more pages

What is the difference between Assurance and Attestation

in auditing?
By Hasaan Fazal on June 4, 2011
Putting it in few words then assurance engagement is much broader term and concept as
compared to attestation engagement. It will not be wrong if we say that all attestation
engagements are assurance engagements but not every assurance engagement is attestation
engagement.
Assurance engagement is an engagement undertaken by the practitioner (e.g. auditor, reviewer
etc.) and at the conclusion of engagement practitioner expresses an opinion about the evaluation
of subject matter. This opinion ultimately enhances the confidence of intended users (other than
responsible party) over the evaluation of subject matter.
Now assurance engagements can take two forms i.e.

1. attestation engagement; or
2. direct reporting engagement

Under attestation engagement, an evaluation of subject matter would have already been
conducted by the responsible party against a set criteria. As this evaluation is usually given in the
form of a report issued to the intended users by the responsible party. This report is actually a
claim by the responsible party of a fair evaluation of subject matter. On that assertion made by
the responsible party practitioner is asked to confirm whether such assertion of evaluation is
fair or not. An engagement to attest the assertions of responsible party is called attestation
engagement. And at the conclusion of attest engagement, practitioner will issue a report in
which he may word his opinion as follows:
Example 1:
In our opinion, the responsible partys assertion that forecasts has been prepared on best
estimate basis, is fair.
Example 2:
In our opinion, the responsible partys assertion that internal controls are working effectively,
is fair
So, from above discussion we understood that attestation engagements are a sub-set of many
different forms of assurance engagement in which a practitioner issues a report to attest the
assertions of against a set criteria. However, assurance engagements is just any engagement in
which users degree of confidence of is reinforced which need not to be attestation e.g.
compilation services etc.

Attestation Services
With Attestation Services, we provide conclusions that confirm the reliability of written
information requested of you, or used by third parties. In these engagements, we provide
independent verification of information, other than financial statements, by examining,
reviewing or applying agreed-upon procedures to the subject matter at handfor example:
determining your compliance with a contract. Or, we can provide assurance regarding an
assertion about the subject matterfor example: confirming that what your company is reporting
is correct.
In applying the same tools we use in performing audits and reviews to attestation services, Heins
Assurance Services professionals experience and expertise improve the quality of the
information for decision makers; and our reputation for integrity reinforces the credibility of
your company.

The subjects of attestation engagements may take many forms, including:

Internal control systems and processes

Historic or anticipated performance

Non-financial performance or condition information such as physical

characteristics

Break-even analyses

Behavior information, such as compliance or contract provisions

Attestation engagements are used in diverse situations, for example:

Service organization reports (SSAE 16/SAS 70)

Agreed-upon procedures engagements

Reporting on financial forecasts and projections

Reporting on pro forma financial information

Reporting on an entitys internal control over financial reporting

Compliance attestation

Difference Between Audit and Assurance

Posted on April 29, 2013 by admin
Audit vs Assurance

Auditing and assurance are processes that go hand in hand, and are usually used when evaluating
a companys financial records. Auditing and assurance are parts of the same process of verifying
the information on the companys accounting records for accuracy and compliance with the
accounting standards and principles. Despite these similarities, there are a few differences
between the two. The article the follows offers a clear explanation on both auditing and
assurance and shows how they are similar and different to one another.
Audit
Auditing is the process of evaluating the accounting information presented in the financial
statements of the organisation. Auditing includes making sure that the financial reports are

accurate, fairly presented, ethically prepared and whether the reports are in compliance with the
accepted accounting principles and standards. Auditing also applies to the financial records of
individuals and is usually used for taxation purposes. Auditing reveals any misuse of funds, any
dishonest business activities, misrepresentation in financial statements, embezzlement, etc. There
are internal audits and independent audits.
Internal audits are conducted by the accountants within the organization. Internal audits can be
conducted frequently to make sure that the financial records are in compliance with standards.
The auditing function can also be outsourced by the organisation to an individual entity
specialised in this type of evaluation so that the firm may obtain an unbiased view of its financial
statements. The auditing firm usually undertakes the audit before the financial statements are
presented to the general public and ensure that the data provides a true and fair representation of
the firms financial status.
Assurance
Assurance is the process of analysing and assessing processes, operations, procedures, etc.
Assurance is also used in the assessment of accounting information and financial records. In
accounting, the main purpose of assurance is to check the accuracy of the accounting information
and records and provide an assurance to all stakeholders that there are no red flags,
misrepresentations or irregularities in the financial reports. The aim of assurance is not to correct
any issues that maybe found in the accounting records, but rather to confirm that the accounting
records are in compliance with the various accounting standards and principles.
Assurance can also apply to other aspects such as to assess the procedures and processes
followed in operations. In such a situation, the processes and systems will be closely observed,
and an assurance will be provided as to whether the process is being conducted in a manner that
brings out the optimum results.
What is the difference between Audit and Assurance?
Auditing and assurance are procedures that go hand in hand, and usually used when evaluating
and assessing a companys accounting information and financial records. Auditing and assurance
are quite similar to each other in that they are both methods used to verify that the companys
accounting records are in compliance with the various accounting standards, principles and,
procedures. Assurance is the step that follows and audit. While an audit can be conducted
internally by company accounts or externally by individual corporations, assurance is usually
done by a professional auditing body or audit board.
Assurances usually follow an audit, because it is after the audit that the assurance will be
provided that there are no misrepresentations or red flags in the accounting records. Such an

assurance is essential to stakeholders of the firm as this guarantees that true and fair information
is provided for decision making.
Summary:
Audit vs Assurance
Auditing and assurance are processes that go hand in hand, and are usually used when
evaluating a companys financial records.
Auditing includes making sure that the financial reports are accurate, fairly presented, ethically
prepared, and whether the reports are in compliance with the accepted accounting principles and
standards.
In accounting, the main purpose of assurance is to check the accuracy of the accounting
information and records and provide an assurance to all stakeholders that there are no red flags,
misrepresentations or irregularities in the financial reports.