Explain the relationship between assurance services and attestation services.
Explanation of Solution
Assurance services:
Assurance services are the services provided by the certified public accountant (CPA). It refers to information enhancement services. It improves the quality of the information provided to him for better decision making. Assurance services are used to increase the value of the information and transparency of the data by monitoring the financial information of the company.
Attest engagement:
Attest engagement refers to providing assurance regarding the reliability of the information. Certified public accountant (CPA) provides a report on the subject matter about the reliability of the information.
Explain the relationship between assurance services and attestation services:
Assurance services include mainly two activities: (1) Services resulted in the increment of the reliability of the data (attest engagement), (2) Services resulted in the formation of the data for effective decision making.
Attest engagement provides the reliability of the information. Attest engagement and assurance services are related in the case of one activity: Increasing the reliability of the data. Both of them provides this service, but assurance services have a wider range of services. It also provides the formation of the data for better and effective decision making.
Thus, the attest engagement and assurance services are related in case of providing assurance regarding the reliability of the information.
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Chapter 20 Solutions
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