There have been several request for us to highlight more on the concept of “Assurance Services”, trust justice would be done to that with this post.
In Assurance engagement, business seek further ‘assurance’ from professionals to give credibility or attest to (attestation) specific assertion made by the management, usually about financial information.
The relationship between audit attestation and assurance services can be classified into;
- Assurance services on any information
- Attestation services; financial information, and
- Auditing of financial statements
In the context of a statutory audit, it is an engagement in which an auditor expresses an opinion on the truth and fairness or “fairly represented’ of the financial statements, so as to enhance the degree of confidence of the shareholders.
Types of Services Rendered in Assurance Engagement
- Assertive Services: this refers to situations where an accountant is engaged to assert for or against the truth, fairness, completeness and/or compliance of the financial statements prepared by a third party.
- Reporting Services: this is a situation where an accountant report on issue that come to his attention during the course of his work. In most cases, could be in the course of rendering assertive services.
Areas of Assurance Services other than Audit
- Maintaining books of accounts from source documents
- Preparing financial statements from books of account
- Accounting and internal control system advisory
- Computerization and Software Accounting set up and implementation
- Personnel training and development
Taxation Related Services
- Preparation, filing of tax returns, Tax advisory services and other tax related services
- On alleged frauds and misappropriations
- On prospectus reports for public issues
- Valuation of shares and business
- Profit forecast, etc.
Receivership, Liquidation and Trusteeship
- Receivership for debenture holders and other creditors on insolvency or winding up of a company and acting as Trustees
Manpower Planning and Recruitment
- Staff recruitment for clients, training and retraining and manpower development.
Assurance engagement, therefore, can only be provided by an expert with sufficient knowledge and understanding of the requirements of every aspect of such an assignment on which he is expected to issue a report.
In addition, such a person must possess such prerequisite characteristics as
- Integrity in all professional and business relationships, to foster public confidence in their professional services
- Objectivity in exercising professional judgement, which is essential for provision of assurance services
- Professional skepticism; attitude of inquisitive and justification mind in the course of assignments
- Methodological; this means to carefully plan, control and document all work in a sound approach to ensure that all the necessary works has been completed and no omission of significant areas during assignments.
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