When working as certified public accountants, we try to help our clients understand the importance of

our services that can assist them in making vital business decisions for their companies. In this manner,
we build trust and reliability in regards to the information and reports we create for our clients. Yet
often, the terms used in the accounting industry can leave people scratching their heads.

One of the most common questions we are asked about involves trying to understand what the words
“attestation, assurance and auditing” means. There are many similarities with these terms — they even
sound somewhat the same — as people wonder if they simply need to get an assurance service done or
whether an audit provides attestation services.

To help provide further clarity, we’ve developed this simple guide so you can understand the differences
between attestation, assurance and auditing in the accounting, IT and compliance business
environments.

Audits: Investigating Aspects of Your Organization

Audits are evaluations and investigations regarding a specific aspect of your organization. During the
course of an audit, information and data is gathered that can help spot a weakness in operational
controls in your financial department, potential workplace dangers, or certain IT risks that can affect the
security of your company. Audits can come in many forms:

Accounting audits

Compliance audits

Human resource or safety policy audits

Operational audits

IT procedures audits

So, in essence, an audit can be performed of financial transactions for your organization or can review
non-financial aspects of your operations. They are designed to allow an auditor to provide an unbiased
evaluation of the gathered information and to discover any gaps in internal controls or systems that are
currently in place.

Then a report can be made and given to the business owner or manager so they can evaluate the issues
that need to be addressed. An audit can be performed internally by a manager or supervisor, or you can
be obtained as an external audit from a third-party firm.
Attestation: Checking the Validity of Data and Internal Controls

Certified public accountants also can perform attestations for organizations in addition to audit
reporting, or provide it as a separate service. An attestation basically takes all the data and information
that has been gathered and checks its validity based upon agreed-upon procedure engagements. An
organization can also request attestation to be performed regarding compliance procedures, reviews on
internal control functions, and reporting on financial forecasts, projections or pro forma data.

More often than not, attestation and auditing services can sometimes be confused with each other. One
of the things to keep in mind to differentiate each of these services is that audits are performed to
discover data, risks, or compliance issues that may not have been known before the audit took place,
and attestation is to evaluate and review how true the data or information is when compared to a
stated purpose, internal control or system.

For example: an organization may want to discover whether their operations are in compliance with a
certain set of government regulations for their industry. An audit may be performed to look for gaps in
their compliance procedures as an issue may be discovered. Then the organization can seek an
attestation to the reported information.

The attestation engagement examines the issue to check if it truly falls outside the parameters of the
compliance standard as an opinion is given about the compliance issue. Then the business can take the
necessary steps to bring their operations back into compliance as well as set risk management policies in
place to prevent the issue from reoccurring.

Assurance: Building Confidence by Examining the Credibility of Information

When companies do business with other organizations, trying to raise money from outside investors, or
are even engaging in merger deals, they need to be reassured that the data and information presented
is accurate and credible. This instance is when assurance services come into play. Assurance work
provided by a certified public accountant aims to substantiate the data that is presented. The
accountant will give their opinion regarding the information that can be used by the company to make a
decision.

So an investor may ask for assurance work to check the financial information in regards to a company
that has asked for funding. The certified public account would review the gathered information and put
it through given procedures before providing a report so that the investor can trust the given data
before agreeing to the financial transaction.

An assurance service basically provides three main goals for an organization:

Helps the company’s reputation that it is presenting truthful information regarding their data, internal
controls and systems

Assists companies to make the best decisions for their operations to promote financial growth

Increase credibility in the provided information that can lead to lower transaction costs and better
resource allocations

Assurance services can be used toward a wide range of purposes. A company may want to check to
ensure all financial information is accurate. They may also desire assurance services to see if a company
abides by all established regulations and compliance standards.

Getting Reliable Auditing, Attestation and Assurance Services

Using an independent third-party to perform auditing, attestation and assurance services can ensure
that you receive unbiased reports and informative opinions in regards to the procedures, protocols,
internal systems and accounting data used throughout your organization. I.S. Partners, LLC is a certified
public accountant firm who offers these services to a range of organizations so they can better manage
operational risks and stay in compliance with regulations so the business can increase their profits.