Assurance in Auditing

Assurance in auditing, give credence to information provided by management to stakeholders. The component of Assurance services rendered by the Auditor will include;

1. A three-party relationship

The first party will be the management, which is responsible for preparing the information needed, to be assured.

The second party is the independent Auditor providing the Assurance

The third party includes stakeholders who rely on the information to make informed decision.

2. Agreed subject matter – the major subject matter of assurance is the company’s financial records.
3. Suitable criteria – this means that there must be some agreed framework, standards, guiding principles and procedures applicable to companies within the jurisdiction
4. Sufficient appropriate evidence. The Auditor must have in his possession sufficient appropriate evidence that the subject matter information agrees with the criteria.
5. A detailed written report at the end of the exercise.

Assurance Services                         Non-assurance Services

Audit engagement                              Agreed-upon procedures engagement

Review engagement                           Compilation engagement

Compliance engagement