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services have been defined by the American Institute of Certified Public Accountants
(AICPA) as 'Independent Professional Services that improve information quality
or its context'. Assurance services reduce the information risk; risk that the
information provided is incorrect, on more than just financial data. The major
purpose of assurance services is to provide independent and professional opinions
that improve the quality of information to management as well as other decision
makers within a given firm. 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. | ![]() |
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Assurance
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