Question

Explain audit services, attestation services, and assurance services, and give examples of each.

Answer 1

1.AUDIT SERVICES - It is part of attestation services,The audit services are perform according to  Generally Accepted Government Accounting Standards.The audit services can be 3 types Internal audit,external audit and Internal Revenue Service Audits.As the name suggests the internal audit services are provided by internal auditors these auditors are appointed by company itself.Main work is to ensure compliance with laws and regulations and to help maintain accurate and timely financial reporting and data collection.It helps management to take effective decisions.The Internal Revenue Service is concerned with audit to verify the returns and taxes accuracy by taxpayer by examination of records.External audit services are provided by auditor outside of the company.he does evaluation and assesment on the companies financial statements and provide a clear opinion to the external and internal users of the company which helps in taking various decisions.

EXAMPLES - financial statement audits,Review and evaluate the efficiency of the manufacturing process,review the invoices and other supporting vouchers to the accounting book,services related to reviewing the financial statements according to the standards required.

2. ATTESTATION itself means checking the authenticity of a document & proving it as valid by providing a impression of verified by a seal or signature.Attestation services are part of assurance services.It is a written communication that expresses a concluding statement regarding the reliability of a written a confident and forceful statement that is the responsibility of another party by certified public accountant (CPA).The main type of attestation services are : compilation, review and audit.

EXAMPLE of attenstation services are written communication on Effectiveness of internal control system,whether the company compliance with rules,regulations,financial information other than financial statement.

3.Assurance services is a broader term and include attestation services.Assurance services are a type of independent professional service usually done by certified public accountants (CPAs). services of assurance services are rendered to get a clear image of the company or organization which helps in better decision making related to investment,lending etc.It includes reviewing of any financial document.

EXAMPLES of assurance services are- review on Accounts receivable ,information system security review ,audits of financial statements,tax services review etc.

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