What principal advantage does an assurance engagement provide for users?

The principal advantage of an assurance engagement for users is that it enhances user confidence in financial results. Assurance engagements, which include audits and reviews, provide an independent evaluation of financial statements, ensuring that the information presented is reliable and free from material misstatement. This independent verification reassures stakeholders, such as investors, creditors, and regulatory bodies, that they can trust the financial data being provided.

By having an assurance engagement, users can be more confident in the decisions they make based on those financial statements, knowing that a qualified third party has assessed the information. This improvement in trust and credibility is crucial, especially in environments where financial integrity is paramount for good investment decisions and overall market stability.