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. It is conducted by an independent, external party whose job is to investigate if existing controls and procedures are being followed appropriately and if any potential areas of concern exist. Auditing can be done on a regular basis or when specific circumstances arise such as changes in personnel or regulations.

Other assurance services such as internal audit, forensic accounting and consulting involve similar activities as auditing with some key differences; for example, internal audit focuses on assessing the effectiveness of risk management processes while forensic accounting involves investigating potentially fraudulent activity within a business. All of these different types of services work together to ensure that organizations have proper safeguards in place to protect their assets and interests which helps reduce exposure to potential liabilities.

Accounting, meanwhile, deals with the recording, classifying, summarizing, analyzing and interpreting financial transactions for reporting purposes. It provides an overall view into how well a business is performing financially by providing reliable data points which can then be used for decision-making purposes or comparing performance against industry peers.

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. Finally audits also help increase public confidence in businesses since it shows stakeholders that there are credible oversight systems in place designed to detect irregularities early on.