Assurance services definition

What are Assurance Services?

Assurance services are provided by an independent third party to verify that financial transactions or documents are correct.  Assurance services are a core activity for certified public accountants, primarily through their auditing activities. The resulting auditor opinions are highly valued by the investment community, since they provide assurance that an entity’s financial statements fairly present its financial results, financial position, and cash flows. By having access to higher-quality information, investors and lenders can make better decisions about how to deal with a business.

Types of Assurance Services

There are many types of assurance services, as noted below:

  • Business performance measurement

  • Financial statement fairness of presentation

  • Information systems reliability

  • Risk assessments

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