Assurance of performance

Abstract

Purpose

The purpose of this paper is to explore the development of the practice and understanding of audit assurance.

Design/methodology/approach

A broad approach is taken, embracing the audit of financial statements, internal auditing and other forms of assurance. The paper endeavours to place this subject within the context of the philosophy of auditing. The paper addresses, and seeks to explain, the need for assurance in contemporary society, how assurance is achieved and the forms in which assurance is given. Finally, the future and the central, even enhanced, role that assurance is likely to play going forward are looked at.

Findings

The paper suggests several drivers behind the need for assurance in contemporary society, including systems complexity, ethical laxity, enhanced risks and the accountability obligation. The indicators are that the imperative for assurance will grow rather than diminish into the future, and that “fuzzy auditing” will assume a larger role.

Research limitations/implications

Being conceptual rather than empirical, this paper makes observations and assertions, the latter in particular being amenable to further research, especially of an empirical nature.

Practical implications

There are many practical implications arising from this study. Amongst these are the form “the assurance profession” is likely to take in the future, the need to redefine approaches to assurance engagement and audit standards, the need for greater flexibility in defining what is capable of being audited, and the future form of assurance reports.

Originality/value

This paper is of value in that it explores and discusses developments and challenges in the provision of assurance services, in the context of both internal and external auditing.

Citation

Chambers, A. (2006), "Assurance of performance", Measuring Business Excellence, Vol. 10 No. 3, pp. 41-55. https://doi.org/10.1108/13683040610685784