Assurance

Assurance is a degree of confidence that information or claims are true or reliable, typically provided by an independent professional who conducts a formal examination and reports on the reliability of the information. The term also describes the professional services themselves, designed to increase stakeholders' trust in financial statements, sustainability reports, or other claims.

In accounting and finance, assurance engagements are independent examinations intended to reduce information risk. They include audits of financial statements, reviews, and other procedures. The practitioner tests evidence, gathers sufficient appropriate evidence, and issues a report expressing the level of assurance. Audits typically provide high or reasonable assurance on the financial statements; reviews provide limited assurance. Independence and professional skepticism are essential.

In insurance contexts, assurance is used in some jurisdictions to refer to life assurance—insurance that pays out on a defined event such as death or survival. This usage contrasts with general (non-life) insurance and varies by country.

In governance and risk management, assurance functions include internal audit, compliance reviews, and external assurance engagements that provide stakeholders with confidence about governance, risk management, and controls. Organizations may seek assurance on areas such as internal controls, information systems, and sustainability reporting.

Regulatory and professional framework: Assurance engagements are governed by international standards such as ISAE 3000 and by national attestation standards.