Assurance Services: its Significance and Importance

Majority of the modern business are aware of the fact of accounting companies offer valuable advice related to risk management and tax help along with general financial consulting services among others. However, few are aware of the fact that there are reputable accounting companies offering assurance services as well. With these high quality assurance services, you can be assure that your business is on the right track by following policies and procedures that could help it grow and flourish. From internal audits to offering comprehensive protection against frauds and spotting weaknesses in your IT network, quality firms high quality services that allow your business to augment its share in the marketplace with proper and efficient utilization of resources.

What are Assurance services?

Assurance services closely scrutinizes day to day operations of your business, all its financial transactions and reports among other important things to determine how well the business is doing the job of efficiently utilizing its resources. This is important as this internal audit can point towards certain deficiencies which could lead to revenue loss. Outdated production techniques, certain internal vulnerabilities, reporting errors and even unscrupulous behaviour and conduct of employees could take the revenue and profit of a company southwards. Quality providers of assurance services could easily find these issues allowing you to take appropriate action on time.

Who are the users of Assurance services?

Businesses and non-profits of all sizes and operating in myriad number of sectors can hugely benefit from these services as it enables them to tighten their production which ensures maximum return on investment. Businesses commonly use Assurance services for internal audits when they smell something fishy which is hampering their productivity and profitability. For example, a company in the manufacturing sector can take help of an assurance service provider to properly assess its supply and utilization of raw materials. The company can utilize the services to determine in what way or manner the raw material is being wasted or not put to the maximum use. Non-profits can take the help of these services to determine if some of their valuable revenue is being used improperly or unjustifiably. This ensures that they are able to maintain their status of non-profit while contributing efficiently to their cause.

Internal audit is not the only area where these services are utilized. Businesses can use services for intelligence purpose a well to increase their operational efficiency. Often during an audit, it is found that productivity in certain areas is falling behind the desired objective. Proper assessment can help them take corrective measures and as such boost their profitability and put their resources to most efficient use.

Apart from internal benefits, assurance services help an organization externally as well. Stakeholders, investors, etc want to be assured at all times that the organization is performing to expectations and its financial health is in order. They also need assurance about risks associated with the business and what the corporation is doing to mitigate the risks and take advantages of the opportunities present in the marketplace. Last but certainly not the least is the assurance that the organization is fully complying with all the statutory laws and regulations.

Fraud solutions

A modern organization operating in a highly complex, dynamic and globalised business environment, where the competition is fierce and the customers intensely demanding cannot hope to survive for long without immense amount of goodwill and impeccable reputation. Under such a situation even the most minor of frauds can sully your reputation beyond redemption. Also, it is not only reputation that suffers a death blow by any type or form of fraud; your assets and finances also suffer immensely because of frauds. A watchful eye on what matters can negate the possibility of fraud and eliminate any regrettable consequences of a fraud being committed.

Internal Audit

This is one of the most important areas where assurance services could prove to be of tremendous value. A thorough internal audit can go a long way in mitigating risk and ensuring that your system of governance and control leaves nothing to be desired. Internal audit help organizations identify, assess and subsequently take appropriate measure to protect itself from risks posed by loopholes in its strategy, operation procedure and finances among others.

An organization’s failure to properly assess risks and subsequently take quick corrective measures can force it to prematurely down its shutters. It is therefore of paramount importance that organizations take a proactive approach to internal audit which could help them manage their risks in a more structured way. A quality assurance services provider offers highly customized services tailoring your organization’s audit to in accordance with its size, area of operation, the sector in which it is operating, its risk appetite and the legal rules and obligations it needs to follow. Top of the line service providers with their extensive expertise, sector knowledge and technical knowhow offer internal audit solution that does an exceptionally good job of advising and assuring you about the way forward. Reputed service providers assist with outsourcing/co-sourcing in addition to internal audit transformation and start-up to help clients shore up their internal controls to maximize their return on investment.

Statuary audit

It is imperative for your business to comply with all the rules, regulations and guidelines prescribed by the government and the relevant concerned authorities. A statuary audit by a firm with professionals who have extensive knowledge of the field as well as the sector in which your company is operating can help you stay on the right side of the law. This enhances your reputation with your customers and also help you operate smoothly without any hindrance and hassles.

Technology risk solutions

We live in the age of internet, big data, and WWW. A modern organization is heavily dependent on technology and in such a situation even the slightest of disruption can cause irreparable loss. Quality firms efficiently manage your IT risks by identify potential problematic areas and offering feasible solutions.

Also See: Outsourced Bookkeeping and Accounting

About the author

Sumit Agarwal
Sumit Agarwal (ACMA ACA India), the Managing partner of dns accountants is a highly respected accountant with expertise in helping owner-managed businesses.