n. satisfied as to the certainty or truth of a matter.
Assurance is an umbrella term for a range of services provided by public accountants that independently validate, improve and effectively communicate business information to stakeholders. More accurate and reliable information means that better decisions can be made, and information risk is reduced. -The decision-maker can thus be assured they are making the right decision.
The auditing of financial statements is the most obvious and commonly-sought assurance service. In Australia, the Corporations Act requires public companies and large private companies among others to have their financial reports audited. A large private company is one that has more than $25 million pa in revenues, gross assets of $12.5 million or more and/or 50 or more employees at the end of the financial year (two out of three).
Auditing and assurance is not limited to financial matters, however. Corporate governance and control processes are frequently audited for larger corporations. Compliance with laws and regulations relating specifically to the entity are often audited as well. Environmental audits are becoming more and more common.
Great accountability is placed on directors and company officeholders when it comes to financial reporting and disclosures, and the conduct of the company more generally. Hence regular audits and assurance reports, assuring management that all is as it appears and ought to be, are increasingly sought. If you are looking to engage an assurance service provider, the best place to start looking is online! Three worth looking at are PwC, Deloitte and KPMG, the latter of which also provides assurance for family business.
