Assurance is a noun that refers to a feeling or belief of confidence and certainty about something. It can also refer to a promise or guarantee given to someone to provide confidence or certainty about a particular outcome or situation. Additionally, assurance can refer to the act of providing confidence or certainty to someone through words or actions.
Assurance is a legal concept that refers to a promise or guarantee made by one party to another, typically in a contract or agreement. It is a form of security or protection provided to the party receiving the assurance, ensuring that certain conditions or obligations will be met. In the context of insurance, assurance refers to the coverage and protection provided by an insurance policy. In legal terms, assurance can also refer to the act of giving confidence or certainty to another party, often through the provision of evidence or documentation. Overall, assurance plays a crucial role in ensuring the enforceability and reliability of contracts and agreements.
Q: What is assurance?
A: Assurance refers to the process of providing confidence and certainty to stakeholders that certain objectives or standards are being met. It involves evaluating and verifying the accuracy, reliability, and effectiveness of systems, processes, and controls.
Q: What is the difference between assurance and audit?
A: Assurance is a broader term that encompasses various activities, including audits. An audit is a specific type of assurance engagement that focuses on financial statements. Assurance engagements can cover a wide range of areas, such as risk management, internal controls, sustainability reporting, and more.
Q: Why is assurance important?
A: Assurance is important because it helps stakeholders make informed decisions by providing them with reliable and unbiased information. It enhances trust, transparency, and accountability in organisations, ensuring that they are operating effectively, efficiently, and in compliance with relevant standards and regulations.
Q: Who provides assurance services?
A: Assurance services are typically provided by qualified professionals, such as auditors, accountants, and consultants. These individuals or firms have the necessary expertise, knowledge, and independence to assess and provide assurance on various aspects of an organisation’s operations.
Q: What are the different types of assurance engagements?
A: There are several types of assurance engagements, including financial statement audits, internal audits, compliance audits, performance audits, sustainability audits, and IT audits. Each type focuses on different areas and objectives, depending on the specific needs and requirements of the organisation.
Q: How is assurance different from consulting?
A: Assurance engagements are typically objective and independent assessments of systems, processes, and controls, aimed at providing assurance to stakeholders. Consulting, on the other hand, involves providing advice, recommendations, and assistance to organisations in improving their operations, processes, and strategies.
Q: How long does an assurance engagement take?
A: The duration of an assurance engagement depends on various factors, such as the scope, complexity, and size of the organisation. It can range from a few weeks to several months, depending on the specific requirements and objectives of the engagement.
Q: How much does assurance services cost?
A: The cost of assurance services varies depending on the nature and scope of the engagement, the level of expertise required, and the size of the organisation. It is best to consult with assurance service providers to obtain a customized quote based on your specific needs.
Q: What is the difference between reasonable assurance and limited assurance?
A: Reasonable assurance engagements provide a higher level of confidence to stakeholders, as they involve a
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 29th March 2024.
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