There have been several request for some highlights on the concept of “Assurance Services”. This post will bring to light the basics of Quality Assurance functions; hopefully.
In Assurance engagement, business seek further ‘Assurance’ from professionals to give credibility or attest (attestation) to specific assertion made by the management, usually about the management financial information.
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.
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
Types of Services Rendered in Assurance Engagement
- Assertive Services: In Assertive Services, 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.
2. Reporting Services: In Reporting Services, an accountant reports 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 Statutory Audit
Besides Statutory audit, assurance services involves other areas such as;
- 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.
Qualities of Assurance Service Professionals
Assurance engagements should be provided by professionals or experts with sufficient knowledge and understanding of the requirements of every aspect of the engagement 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 judgments, which is essential for the provision of assurance services;
- Professional skepticism; attitude of inquisitive and justification mind in the course of the assignment;
- 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.
Since a business usually expects a quality assurance result and attributed report, it is very important that the professional or expert understands the scope of his/her responsibilities and implement these functions with required professional ethics and due diligence.
Do You Need Accounting Help?
Consistent up to date and cleaning of accounting records for sound business decision making, may be posing some difficulties when you are preoccupied with other business functions. Is it time to consider independent professionals because of certain technical complications that could occur along the line? It could also be daunting, time-consuming procedures. Not recording correctly and poor monitoring can cause complications and confusion.
At Fritznoble , we assist our clients on the best available options that suit their businesses...Reach out/ Outsource With Us… If Accounting works are bothering you, then it’s time you outsourced your accounting and bookkeeping requirements, this will help you concentrate more on core competencies of your business; with a team of professionals to help.
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