What is assurance?

Assurance is a type of service provided by accounting firms to help improve the quality and reliability of information used by stakeholders in making decisions. This can include evaluating the accuracy and completeness of financial statements, assessing the effectiveness of internal controls, and providing recommendations for improvements.

Assurance services are typically provided by certified public accountants (CPAs) or audit firms, who follow standardized procedures and guidelines to ensure the reliability of the information being examined. This can help investors, lenders, and other stakeholders make informed decisions based on trustworthy information.

There are different types of assurance services, including financial statement audits, reviews, and compilations. Audits are the most comprehensive form of assurance, where the CPA examines the company's financial statements and internal controls in detail to provide an opinion on their accuracy and fairness.

Overall, assurance services play a crucial role in building trust and confidence in financial information, helping companies maintain transparency and accountability in their reporting practices.