2.2 - Benefits of Assurance

Question 1

What is the key benefit of assurance?

Answer 1

The independent, professional verification being given to the users

Question 2

What subsidiary benefits does assurance give regarding banks?

Answer 2

Give banks more confidence to lend to that business, as their credibility is enhanced

Question 3

What subsidiary benefits does assurance give regarding deterrents?

Answer 3

It’s existence makes people involved in preparing the subject matter more cautious - less mistakes or fraud

Question 4

What subsidiary benefits does assurance give regarding deficiencies?

Answer 4

Where problems exist within information, the existence of an assurance report draws attention to the deficiencies in that information, so users know what those deficiencies are

Question 5

What subsidiary benefits does assurance give generally?

Answer 5

Ensures high quality reliable information exists, giving investors confidence and building good reputations for firms/countries