Assurance Services, Attestation Services and Non-Assurance Services

What is the difference between assurance, attestation, and non-assurance services? This CPA Exam Auditing and Attestation (AUD) lecture explains the hierarchy of professional services CPAs provide — from broad assurance engagements down to specialized attestation services like financial statement audits, internal control audits, reviews, and SOC reports. Built for accounting students and CPA candidates, this Professor Farhat lesson clarifies where each service fits and why it matters for the CPA Exam. Try it free at farhatlectures.com — interactive exercises, lectures, simulations, cases, multiple choice, and AI tools for CPA, CMA, EA and students. Video Timeline & Key Concepts: 0:00 — Introduction 0:08 — Assurance Services: independent services that improve information quality 3:00 — Attestation Services: a CPA evaluates and reports on another party's assertion 4:23 — Non-Assurance Services: tax, bookkeeping, and consulting (no opinion) 5:25 — Audited Financial Statements: the most common attestation service 7:03 — Audit of Internal Control over Financial Reporting 8:19 — Reviews: a lower level of assurance than an audit 9:39 — Other Attestation Services and SOC 1, 2, and 3 reports Frequently Asked Questions: What are assurance services? Assurance services are a broad category of independent, unbiased professional services designed to improve the quality of information for decision-makers. They can be provided by CPAs or non-CPAs, such as Consumer Reports rating products. What are attestation services? Attestation services are a specialized subset of assurance services in which a CPA firm evaluates a claim, or assertion, made by another party and issues a formal written report or opinion on it. What are non-assurance services? Non-assurance services include tax preparation, bookkeeping, and general management consulting, where the CPA does not provide an opinion on a subject matter. They fall outside both assurance and attestation. How does a review differ from an audit? A review provides a lower level of confidence than an audit, requiring less evidence and therefore costing less. Private companies often use reviews to satisfy banks, while audits provide reasonable assurance and are mandatory for publicly traded companies. Why do CPAs have an edge in attestation work? While non-CPAs can provide general assurance, CPAs maintain a competitive advantage over financial audits and attestation engagements because of their reputation for independence, rigor, and competence. #CPAexam #CMAexam #enrolledagentexam #accountingcourses #collegecourses #courses #AUD #auditing #assurance #attestation #SOCreports #ProfessorFarhat #accountingstudents