Question

250 WORDS

Explain the relationship between assurance services and attestation services. Give examples of each. Do not forget to note your source and in-text citation in APA format.

Answer 1

Attestation Vs Assurance

Attestation is a type of engagement where the attester provides a report as to whether an assertion has been made in confirmity with the appropriate criteria. The purpose is to assertain the degree of correspondense between those assertions and established criteria and to communicate the results to interested to Interested users. Whereas Assurance is a type of attest function in which an auditor provides an independent opinion as to whether management has prepared financial statements in confirmity with the applicable financial reporting statndards.

Attestation includes audit of financial statements, reporting on forecasts, projections, pro-forma information, effectiveness of internal control, or the clients compliance with the specified laws and regulations or contracts or grants. Whereas Assurance covers all that is covered in attestation.

Assurance is an systematic and independent examination of books,accounts,statutory records, documents and records of an organisation to ascertain that how well the financial statements as well as non financial diclosures present a true and fair view of the concern. Whereas attestation is process of validating that something is true.

Assurance engagements are governed by professional standards whereas attestation standards apply only to those situations not adressed by professional standards. All attestation engagements are assurance engagements but not every assurance engagement is an attestation engagement. In statutory law of wills and trusts , an attestation clause is a clause that is typically appended to a will often just below the place of testers signature.

To summarise we can say that all attestation engagements are assurance engagements but not every assurance engagement is an attestation engagement.