It involves the procedure of assessment regarding the financial records and accounting entries. Assurance services are provided by independent professionals, which help to improve the quality of information for the decision-makers. For instance, assurance services can review any financial transaction or document i.e loan, contract. 

This certifies the validity, authenticity, and correctness of the document being reviewed. Furthermore, assurance services can assist companies to overcome the complexities and risks associated with third-party relationships. Assurance is a way to enhance the relevance, value, and transparency of information held by a company. 

The major difference between assurance and audit services relates to the key purpose. Assurance is not meant to correct the issues found in the accounting records. On the contrary, the true purpose of this procedure is to measure the compliance of a company in terms of following the accounting standards and principles.

Assurance relies on key aspects like assessment of the procedures followed during financial operations of a company. Hence, the assurance team closely monitors the operations and procedures. The assurance explains that a specified procedure needs to be followed for gaining maximum outputs.

Below are the five elements of assurance engagement:

• Three-party relationship (Practitioner, Responsible party, and Intended users)
• Relevant subject matter
• Appropriate criteria
• Sufficient evidence 
• A conclusion or expression of opinion within a written report

The basic aim of assurance is to verify whether the financial reports of a company are accurate. This process helps to assure that no fraudulent activities are done by/in the company. It also rules out the chance of any misrepresentation regarding the financial records of a company.