Which of the following is NOT considered an assurance service?

The correct answer is the compilation of financial information. Understanding why this is categorized differently than other assurance services is important for grasping the distinctions in the roles that these services play in auditing and financial reporting.

An assurance service is one that provides confidence to users about the reliability of information. In this context, audits, review engagements, and agreed-upon procedures all deliver a level of assurance to stakeholders. For instance, an audit of financial statements is designed to provide reasonable assurance that the financial statements are free from material misstatement, thereby allowing users to rely on them for decision-making. Similarly, a review engagement offers limited assurance that no material modifications need to be made to the financial statements for them to be in accordance with the applicable financial reporting framework. Agreed-upon procedures give users the results of specific procedures that were applied to financial information but do not provide a level of assurance; stakeholders will need to evaluate the results of those procedures based on their terms.

Conversely, a compilation of financial information does not provide any assurance. Instead, it involves the accountant assisting in presenting financial information in the form of financial statements without expressing any assurance on them. The accountant compiles the data based on client-provided information, maintaining no responsibility for verifying its accuracy or completeness