（2002）Twenty-First Century Assurance.pdfVIP

AUDITING: A Journal of Practice Theory Vol. 21, No. 1 March 2002 Twenty-First Century Assurance Robert K. Elliott SUMMARY Every aspect of the accounting profession is being pervasively affected by ad- vances in information technology (IT). IT shifts power from producers (such as accoun- tants and auditors) to consumers (such as investors, creditors, and other information users). Present and potential users of accounting and auditing services have increasing needs for relevant, reliable, and timely information, and IT provides the means to meet them. But responding to these needs will require changes in virtually every aspect of auditing—where it is applied and how it is produced and distributed, for example, as well as the profession’s relations with assurance users. This article explores some of the principal changes in the audit paradigm that will be necessary in order to meet assur- ance-user needs in the future. Keywords: continuous assurance; insurance; independence; fraud; XBRL; user pays. he future of assurance services lies in trends underway and the profession’s interaction with its evolving environment. Assurance technology will progress by adaptation and creativity, Tperhaps achieving a new service model. This article will explore these possibilities, starting with those nearer to realization and moving on to those now at a greater distance. A comparison between the historical assurance service, the audit, and future assurance services for business reporting is summarized in Figure 1. The frequency of service delivery changes from annual to continuous. The traditional opinion on financial statements broadens to assurance on information c