Describe and state the purpose of auditing, other assurance services, and accounting. State the relationships between the three and provide examples. Why are independent audit services important in today’s business world?

Auditing is the process of examining a company’s financial statements in order to provide assurance that they are presented fairly and accurately. The audit is performed by a third-party independent party. Its job is to check if the controls and procedures in place are followed properly and identify any possible areas of concern. Regular audits can be conducted or they may only occur when certain circumstances, such as a change in regulations or personnel are present.

The activities of other assurance services, such as consulting, forensic accountancy, and internal audit are similar to auditing, but with key differences. For example, the internal audit service focuses on assessing risk management process effectiveness, while forensic accounts investigates potentially fraudulent behavior within an organization. These different services all work in tandem to help organizations protect assets and reduce potential liability. For example, internal audit focuses on assessing the effectiveness of risk management processes while forensic accounting investigates potentially fraudulent activity within a business.

Accounting deals with recording, categorizing, summarizing and analyzing financial transactions to be used for reporting. This gives a clear picture of how a business performs financially. It can also be used to make decisions or compare performance with other companies.

Independent audits play an important role in today’s business world because they offer reassurance that information provided by companies is transparent and accurate thus helping investors make informed decisions about where to put their money. Additionally, it also provides companies with valuable feedback regarding their internal controls – this includes identifying potential weaknesses so that corrective measures can be taken before any issues become exacerbated over time. Audits can also increase the public’s confidence in companies by showing that they have credible systems of oversight in place to identify irregularities as early as possible.