Audit & Assurance

Audit and Assurance :
Audit and assurance are critical components of financial management and corporate governance. While often used interchangeably, they represent distinct concepts within the realm of accounting and business.

Audit :

• An audit is an independent examination of an organization's financial statements, records, internal controls, and processes to ensure accuracy, reliability, and compliance with relevant laws and regulations.
• The primary objective of an audit is to provide reasonable assurance to stakeholders, such as investors, creditors, and regulators, that the financial statements present a true and fair view of the organization's financial position and performance.
• Audits are typically conducted by external auditors who are independent of the organization being audited. They follow established auditing standards and procedures to assess the organization's financial statements and related disclosures.

Assurance :

• Assurance services encompass a broader range of activities beyond financial statement audits. They involve providing assurance on various aspects of an organization's operations, processes, controls, and information systems.
• While financial statement audits are a form of assurance service, other types of assurance engagements may include reviews of internal controls, compliance audits, performance audits, and IT audits.
• The objective of assurance services is to enhance the credibility, reliability, and transparency of information provided to stakeholders, thereby improving decision-making and risk management processes within the organization.