Audit Vs Assurance:
Audit is the process of checking and evaluating the accounting procedure in order to present the financial statement of a business error free. Assurance is the first step of the audit process. Audit for an organization can be performed by internal auditor or external auditor whereas Assurance is provided by the Audit firm.
Audit refers to a systematic and independent examination of accounts, books, documents and vouchers of a specific organization to make sure how far the financial statements present a true and fair view of the concern. Audit makes sure that the books of accounts of an entity are maintained in a proper manner as required by the law or not. Audit can be done both by internal and external auditor. Audit can be performed monthly, quarterly or annually.
Assurance is an independent service which is provided by chartered or certified public accounts. The purpose of assurance is to improve information about the specific firm in order to make the situation easy for the decision makers about the firm. In Assurance service professionals provide independent and professional opinions which reduces information risk.
Main difference between Audit and Assurance:
The following are some of the major difference between Audit and Assurance.
- Audit is used to evaluate the accounting procedure of the financial transactions of a specific firm whereas on the other hand Assurance is used to provide key information about the performance of the firm.
- Audit is used to eliminate errors in the transactions and assurance is used to help in the decision making process.
- Assurance is the step of an Audit process.
- Audit is done for the organization by internal or external auditor whereas on the other hand Assurance is done by professional chartered or certified public accounts team.