Building Confidence by Examining The Credibility Of Information
An Assurance Service is an independent examination of a company’s processes and controls provided by a certified public accountant that monitors and analyses the activities related to a company. The accountant will give their opinion regarding the information that can be used by the intended to make an informed decision. When companies do business with other organizations, trying to raise money from outside investors, or are even engaging in merger deals, they need to be reassured that the data and information presented is accurate and credible. This instance is when assurance services come into play. Assurance work aims to substantiate the data that is presented.
An Assurance Service Provides Three Main Goals For An Organization:
- Helps the company’s reputation that it is presenting truthful information regarding their data, internal controls and systems
- Assists companies to make the best decisions for their operations to promote financial growth
- Increase credibility in the provided information that can lead to lower transaction costs and better resource allocations