Example of Assurance Services.

There are examples of assurance services, but you have to first understand and possibly comprehend what do we mean by assurance?

Assurance basically describes the process whereby one party is trying to give some level of comfort to another party about a subject matter.

For example, an external audit is an example of an assurance engagement, this is where the external auditors audit the financial statements to provide some comfort/confidence to the shareholders that financial statements are basically OK.

The correct term would that auditors provide reasonable assurance to the shareholders that the financial statements are presented faithfully. When we say faithfully presented, it means:

Factual
Free from bias
Represents actual transactions that have taken place in the business

The assurance engagement always has the following five elements:

1. Has to involve a subject matter
2. Has to have a criteria to test or adhere against
3. Needs to be prepared by someone (Responsible Party)
4. Needs to have an intended use (Users)
5. Where an expert expresses an conclusion (Practitioner)