Question

What three parties are involved in an assurance service?

Answer 1

In an assurance service, there are three parties involved: the client, the practitioner, and the intended users. The client seeks assurance, the practitioner provides it, and the intended users rely on it.

Step-by-step explanation:

In an assurance service, there are three parties involved:

1. The client or the party who seeks the assurance service.
2. The practitioner or the professional accountant who provides the assurance service.
3. The intended users or the third parties who rely on the information provided by the practitioner.

The client requests the assurance service to gain confidence or assurance about the reliability of their financial statements or other information. The practitioner then examines the client's information and issues a report providing assurance to the intended users. The intended users, which can be investors, lenders, or other stakeholders, rely on the report to make informed decisions.