Audit and assurance are processes used for the evaluation of the financial record of the company. They are hand in hand process. The audit is the process of evaluating the accounting entries present in the financial statement of the company. Assurance is the process of analyzing and used in the assessment of accounting entries and financial records. An audit usually follows assurance.
Audit and assurance is the process of verifying the records available in the company’s accounting record are as per accounting standard and principle and it also confirms that accounting record is accurate or not. However, there is a difference between audit and assurance services.
So without any further ado, let’s map out the main distinctions between assurance and audit services.
| Audit | Assurance | |
| The audit is the process of evaluating the accounting entries present in the financial statement of company. The audit checks the accuracy of the financial reports.
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What is it? | Assurance is also about verifying the records available in the company’s accounting record o confirm that it is as per accounting standards and principle and it also verifies that accounting record is accurate or not.
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| The audit is the first step. | Step in order? | Once the audit is complete.
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| An internal auditor or external auditor does the audit.
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Who going to do?
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An audit firm does assurance. |
| The audit guarantees the financial records are published in a fair, ethical, and reliable manner, and that they adhere to accounting practices and values.
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Their goal? | Assurance assesses the integrity of financial reports/records and communicates the information’s validity to all stakeholders, which helps in reaching a better decision.
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