4. Disclaimer Audit report - The disclaimer audit report is the report that concerns to the financial statements where there is matter to auditor’s freedom and those mater cause auditor not be able to obtain adequate audit evidence to support their opinion.
Constituents of an Audit Report It is necessary for any firm to know what contains in an audit report. It is also essential for the auditor to examine the financial statements of the business before issuing the audit report. Besides the letterhead of the firm, the key elements included in an audit report are – •
A title suggestive of the term “independent”,
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That the financial statement, which is the topic of the report, was audited,
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A declaration stating that the financial reports are the responsibility of the organisation and the auditor is just giving his estimation,
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The audit was conducted in line with the commonly accepted auditing standards,
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A statement that the auditor planned and completed the audit
Apart from this, an audit report must include a declaration that the auditor believes that there is a reasonable basis for this opinion. Also, it should state a conclusion that the financial statements are presented fairly in all substantial aspects. Furthermore, in the closing part, the report should necessarily contain the signature of the auditor’s company, either physically or printed form, and the date on which the audit report was created.
Importance of an Audit Report Here’s why professional audit is important for an organization. 1. Get a Detailed Overview – one the auditors conclude their findings, the company will have the final report in their hands. They can get a complete picture of how the business is working. Even though a company makes sure that there are no mistakes from there end, small mistakes are bound to happen, and that must be corrected. 2. Receive an Additional Perspective – One can be complacent sometimes. This can create a significant problem shortly, which is why it is essential to conduct an audit
