What are Financial Reporting and Assurance Services ? : An Assurance Services Primer

“Exactly what are Financial and Assurance Services ?” is a question we hear often. We answer that question in this piece on Financial reporting and Assurance Services and the types of Assurance services and Auditing services.

Financial Reporting and Assurance and the Difference between them

As the name implies, there are two components to Financial Reporting and Assurance: namely, ‘Financial Reporting’ and ‘Assurance’, respectively! So what do we mean by each and what is the difference between them?

Financial reporting is commonly the better understood of the two, especially amongst laypersons (not surprisingly given the many auditing firms and auditing services all around us). An audit is the monitoring and assessment of the financial and accounting information of a business contained in its financial statements. It aims to ensure these records are accurate and follow accounting principles and standards.

Assurance, on the other hand,  is the evaluation of a firm’s operations, systems, processes, and procedures of a firm which assesses the accuracy and authenticity of financial reports – the reports that audits or auditing services aim to uncover inaccuracy, fraud, misuse, or other irregularities in.

There are several types of Assurance services that can be broadly divided between Financial and Non-Financial Assurance services. The former, financial type includes areas such as due diligence on transactions with other companies and internal financials analyses and projections, for example, cost, revenue, and profits forecasts for internal purposes. It also includes an assessment of the financial information itself as to whether it is adequate, accurate, or sufficient. Non-Financial Assurance Services include analyses and assessments of non-financial parameters, such as operational performance, quality control, data security, and environmental performance.

To sum up the difference between them in a nutshell:  the role of Assurance is to ensure there are no irregularities in the financial records, and that of Audit is to uncover them if there are.

The Importance of Financial Reporting and Assurance Services

While each Financial Reporting and Assurance thus play distinct roles, the two are closely linked. Both exist to ensure accurate and high-quality financial reporting and drive better decision making, and thus business performance, for the firm. Hence, the practice exists combined as ‘Audit and Assurance services.

Assurance services are crucially important today when businesses must keep pace with the evolving regulatory landscape and rapid technological advancements. Recent trends in the fields of law and technology indicate significant changes in the audit landscape.  Audits have become increasingly more complex, and the smallest non-compliance is detected- and often penalized heavily. Financial Reporting and assurance checks are critical for companies today as they strive to stay abreast of changing laws and regulations and fast-evolving technology.

High-caliber Audit and Assurance services help firms navigate these changes successfully; and the best Auditing and Assurance services such as MBGs, as opposed to routine audits from average auditing firms, ensure firms not just survive but actually thrive through them.

Winning With MBG’s Financial Reporting and Assurance Services

At MBG Corporate Services, our  Assurance services practice is renowned for improving stakeholder trust while driving both operational and financial value in our clients’ businesses.

With in-depth insights on client business-specific risks and thus the highest quality risk mitigation solutions, we offer customized Assurance services across all business disciplines.  These cross-discipline Financial Reporting and Assurance services are driven by high-quality auditors and domain experts as well as the use of advanced data and analytics. We ensure complete stakeholder view and understanding leading to smarter decision making and business outcomes.

For more information- Contact us:-

Email id:- [email protected]

Contact no:- +91-8860190008

Contact us and win with our Financial Reporting and Assurance Services