Question

Explain the following business terms:

• Explain what attestation means in business.
• Explain what assurance means in business.
• Explain what auditing means in business.

Answer 1

Attestation in business is concluding some financial reports by a person who has a cerification of big reputed authority like Institute of charted account of india (ICAI) like Charted accountant and also given his consent for the correctness of facts in the reports which are subject to the attestation and it is subject to the legal proceedings in case the attestation is valid.

Assurance in business is a kind of services to the business to ensure that the reports which have been finalized is not subject to any errors or any manipulations and can be shared with external users of the company such as the Shareholders, borrowers, Banks and private institutions with no doubt in mind about anything.

Auditing - Auditing is the process of checking the financial reports on the random basis and also the check each and company also hires internal auditor for the continous Audits in the business which helps in correcting the errors or mismatch on the routine basis and also helps external auditors for getting information from the internal auditiors and Auditing is mandatory for every organization by the companies Act and company is also legally bind to perform these activities on the regular basis.