CandleFocus Glossary Editor
Assurance is a form of risk management that provides financial protection in the event something certain to happen. It is a permanent coverage, often lasting up to the insured individual’s life. In comparison to insurance, where risks are covered within a specific time frame, assurance provides long-term protection.
One type of assurance is life assurance. This plan pays out a set amount of money upon the death of the insured, or alternatively within a specific period of time or at the retirement age of an individual. It is the safest and most secure form of coverage due to its permanence, however it permits the exchange of money for peace of mind.
Assurance also refers to professional services provided by accountants, lawyers and other professionals to protect companies from risks and pinpoint any potential issues. Among these services are audit and accounting, internal control and management, information technology and security, and corporate risk.
Assurance services quality control can also be provided by a third party, specialising in quality assurance. These services ensure consistent quality in products and services provided, by utilizing certain criteria to measure the performance and quality of those products.
Negative assurance is another type of assurance service. Negative assurance states that the accuracy of something is accounted for unless there are negative findings. In this case, the accountant might provide a notice of any discrepancies or inaccuracies present in the financial records of a company, or statement of opinion. This can be helpful for companies which don’t have an obvious audit issue, but instead have a more technical or complex issue.
In conclusion, assurance is a broad term that covers a variety of services, in the context of both assurance services and insurance. It is a permanent form of financial protection, or peace of mind in the case of life assurance, that is implemented to mitigate risks and provide a safety net in the case of uncertainty. It is also used to provide assurances that a company is operating in accordance with set regulations or expressions of opinion.
One type of assurance is life assurance. This plan pays out a set amount of money upon the death of the insured, or alternatively within a specific period of time or at the retirement age of an individual. It is the safest and most secure form of coverage due to its permanence, however it permits the exchange of money for peace of mind.
Assurance also refers to professional services provided by accountants, lawyers and other professionals to protect companies from risks and pinpoint any potential issues. Among these services are audit and accounting, internal control and management, information technology and security, and corporate risk.
Assurance services quality control can also be provided by a third party, specialising in quality assurance. These services ensure consistent quality in products and services provided, by utilizing certain criteria to measure the performance and quality of those products.
Negative assurance is another type of assurance service. Negative assurance states that the accuracy of something is accounted for unless there are negative findings. In this case, the accountant might provide a notice of any discrepancies or inaccuracies present in the financial records of a company, or statement of opinion. This can be helpful for companies which don’t have an obvious audit issue, but instead have a more technical or complex issue.
In conclusion, assurance is a broad term that covers a variety of services, in the context of both assurance services and insurance. It is a permanent form of financial protection, or peace of mind in the case of life assurance, that is implemented to mitigate risks and provide a safety net in the case of uncertainty. It is also used to provide assurances that a company is operating in accordance with set regulations or expressions of opinion.