Audit Report Example

An audit report is a summary of the investigations launched by the accountant on behalf of his clients. These investigations are meant to provide the required analysis to the management to reach the required goals in a more systematic way. It also provides a guideline to make changes that will improve the performance. Generally, an auditor will include his report in the annual report of the company. The main objective of an audit report is to provide complete accounting transparency.

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An audit report includes the opinion of financial analysts about the business as internal financial statements including income statement, Balance Sheet, Income Statement, and Statement of Cash Flows. Auditor’s reports are usually available in the annual reports of companies only prior to the financial year end. There are two types of opinions created by the audit report example; the primary opinion and the auxiliary opinion. In the primary opinion, the general manager is criticized for his strategic decisions and for the execution of the strategy. On the other hand, in the auxiliary opinion, the audit committee is criticized for its failures in the management’s activities.

Usually, an audit report example contains two pages. The first page presents the summary of the entire audit work. Pages 2 and 3 contain the specific recommendations, criticisms, and conclusions of the auditor. The financial status and the cause of the financial status are the important information given in the first page of the audit report example. The third page is the target page, showing the targeted result. These result pages are often given in a company’s annual report.

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The auditor’s report has two main purposes. The first is presenting the results of the investigations conducted on behalf of the client. Second is correcting the deficiencies or errors detected during the audit process. If the first purpose happens to be the main one, the internal auditing process will be considered as the only logical solution. However, this situation is rare, considering the fact that the goals of the clients may differ from the needs of the auditor.

Audit report examples also contain statements that direct the readers of the audit report examples to refer to the regulatory bodies and their instructions. Examples for the US Generally Accepted Accounting Principals (GAAP) are usually presented on the first page. Statements concerning the European Common Reporting Bureau (CCRT) and the International Financial Reporting Standards (IFRS) is presented on the next two pages. Both these sets of statements should be read carefully by the public accountants who have been reviewing or commenting on the financial reports. The purpose of reading them is not just to learn about the basics of accounting principles, but also to get a better understanding of the differences between the two sets of rules.

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For companies that have already implemented an accounting policy, it is a good idea to prepare an audited financial report format that is consistent with the policy. Otherwise, the policy could be considered as a guidance for the company to follow, instead of an actual rule that must be followed. The auditor should explain the policy in his or her own language, preferably in the native language of the company, so that readers will feel comfortable reading it. The audited financial report format should also make it clear that the company has specific roles and responsibilities in terms of maintaining proper accounting records.

The importance of providing a complete set of documents to the auditing process cannot be underestimated, especially if the audit involves a complex internal control problem. Even if a company has implemented controls, it may still need to acquire internal control devices, such as audit management systems, to make sure that the processes described in the audit report example truly reflect the status of the internal controls. For instance, an auditor report example that discusses the results of an internal control function may not require further discussion of the control functions themselves, unless the reviewer wants to point out the deficiencies of those functions.

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In this article, we discussed four types of auditor reports, and what each of these four types typically indicates to the reader. The information provided here should help you become more familiar with this topic, so that you can begin to provide accurate advice when you produce financial statements for your own firm. If you find that you are having difficulty producing accurate audit reports or do not understand how to read financial statements from your own firm, you should consult with a Certified Public Accountant who specializes in financial statement analysis.