To established auditors and accountants, there’s no debate as to whether audit and assurance services Kenya are the same or not.
To newbies joining the industry or learning more about audit and assurance services Kenya, the difference may not be clear.
Today, we look at this topic in-depth and reveal the key differences between audit and assurance services Kenya, the benefits of audit and assurance services as well as what each service means to an organization.
So, let’s dive in and understand more about audit assurance services.
What are Audit services?
Auditing means the process of evaluating the financial or accounting entries in a financial statement of a company where the accuracy of the financial reports is checked.
Further, the audit also verifies whether the entries and the report as a whole are as per accounting standards and principles. If there are any misrepresentations, misuse of funds, and fraudulent activities, then these will be revealed through the audit.
An audit is done by internal auditors as well as external auditors who provide an independent, unbiased audit report.
Something to note is that internal auditors conduct audits more frequently to verify the records in the financial report.
External auditors are brought in to provide an unbiased audit of the company’s financial records and entries in the financial report to verify their accuracy, standards, and authenticity of the same.
They work to provide the company a true picture of their financial state as alluded by the internal auditors.
What are Assurance services?
Assurance, unlike an audit, is the process of analyzing, verifying, and assessing accounting entries and financial records for adherence to accounting principles and standards as well as the records being accurate or not.
Assurance services are much more about assessing the processes, operations, procedures, etc. within the company. The major objective or aim of assurance services is to check for the accuracy of financial records and reports.
The assurance service gives the stakeholders of a company the assurance that from the analyzed reports and entries, there’s no misrepresentation in the financial records, neither is there fraud, misuse of funds, and any other fraudulent activities within the company or done by the company.
Assurance service reveals the state of compliance to accounting standards and principles in the financial reports of a company. It assesses the processes, systems, and procedures and monitors these systems, processes, and procedures closely to guarantee they are right and deliver optimum results.
In summary, assurance focuses on assessing and improving the quality of the information- be it financial or otherwise, in a company so that decisions made from these reports are accurate and desirable.
Audit vs Assurance: What are the differences between audit and assurance services Kenya?
Audit and assurance services are all about evaluating the financial records of the company for accuracy and compliance with accounting standards and principles.
However, there is a notable difference when looking at audit and assurance services in Kenya. Below are the differences.
Audit vs Assurance: Definition
As already mentioned above, audit is the process of evaluating the financial or accounting entries in a financial statement of a company where the accuracy of the financial reports is checked.
Assurance, on the other hand, is the process of analyzing, verifying, and assessing accounting entries and financial records for adherence to accounting principles and standards as well as the records being accurate or not.
Audit vs Assurance: Steps
An audit is normally done first before an assurance service is secured to verify accuracy and adherence to laid down standards and principles.
Audit vs Assurance: Who does what
An audit is done by internal or external auditors. Assurance is done by an external audit company.
Audit vs Assurance: Aim or Objective
An audit tells of any misrepresentation in the financial records, misuse of funds, fraud, and other fraudulent activities in the company or done by the company. An assurance service provides assurance by assessing the quality of information as consequential decisions are made out of the assurance report. It’s more to facilitate decision-making.
Audit vs Assurance: Uses
Audit reports checks for mischief in financial records. These can be an unethical representation of the records, fraud, and fraudulent activities. It also identifies if the company’s personnel are into mischievous financial dealings within the company or whether the company itself is doing fraudulent transactions.
Assurance verifies the accuracy of financial report presentation or records so that stakeholders are assured of a clean, fair position of the company’s financial standings and dealings, out of which decisions are based. Adherence to standard procedures and accounting principles is also checked under assurance.
So, it’s clear that although audit and assurance services Kenya go hand in hand, there’s a difference between the two which is essential to understand.
Audit and assurance services Kenya with Taxmart Kenya
Our audit and assurance department provides audit and assurance services to clients on their financial performance and operations, as well as helping them improve their external financial reporting and adapt to new regulatory requirements.
We have over 40 years of collective experience in audit and assurance services and our clients love us because of our professionalism, expertise, and integrity. We are innovative in our approach to audit and assurance and would love you to be our next ambassador.
Talk to us today via +254 727 434 740 or email on admin[at]taxmartkenya.co.ke. Our audit and assurance services Kenya are rated among the best because of our unique, deliberate approach to auditing and assurance as a service.