Attestation refers to the provision of assurance or due diligence services by qualified professionals aimed at objectively examining assertions made by another party regarding compliance, internal controls, financial reporting, or other critical activities/documents needing verification and authentication.
Types of Attestation Engagements
- Audits opine on fairness of financial statements according to GAAS/GAAP or particular criteria
- Reviews report on condensed interim financials’ conformity to applicable standards
- Agreed-upon procedures apply a series of pre-determined tests without subjective assurance
- Compliance attestations assess conformity with debt covenants or regulations
Example of Attestation
An SSAE 18 SOC 1 attestation engaged CPAs to methodically evaluate and report on the design and operating effectiveness of IT controls at an outsourcing firm serving financial clients.
Key Takeaways
Attestation provides assurance to third parties through independent examination of subject matters, strengthening credibility and mitigating risks via substantiated evaluations of conformity with pre-defined standards or criteria.