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The process of audit aims at evaluating and inspecting the financial records of the company to ascertain if the financial transactions, income and expenditures have been represented in the company’s financial record honestly and accurately. It is important to maintain honesty and transparency with the financial records of the company because it affects the investors, stakeholders, management as well as the end customers of the company. The process of an Audit takes into account the evaluation of accounting entries,
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Assurance services are closely related to audit services. The objective is to facilitate transparent communication between company and stakeholders such as management, investors, and customers. The idea of assurance services is to help the stakeholders make better and presumably more informed decisions regarding their investments in the company.
The main objective that financial accounting aims to achieve is to render investors with clarity and insight into the information on how a company has been using the investor's money. From the perspective of investors, it is extremely important to get a clear, accurate, and reasonable account of the value addition made by the company for the investor. Having clear information about a company’s financial credentials put the investors in a better position to make sound and informed decisions.
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