The auditor’s report on financial statements
International Standard on auditing-700
The audit is designed to allow the auditor to express an opinion. Theexpectation of both the auditor and the client is that the report will beunqualified, however, there may be reasons that the auditor does havereservations about the fairness of presentations. Auditor report aredesigned to promote clear understanding between the auditor and thefinancial statement reader, therefore, a standard format is compliedwith in all reports issued by the auditors.
Basic elements of the auditor’s reporta.Titleb.Addresseec.Opening or introductory paragraph
i.Identification of financial statements auditedii.A statement of the responsibility of the entity’smanagement and the responsibility of the auditor
i.A reference to the ISAs or relevant national standards orpracticesii.A description of the work the auditor performed
i.A reference to the financial reporting framework used toprepare the financial statements (identifying the country of origin of the financial reporting framework when theframework used is not international accounting standard);ii.An expression of opinion on the financial statements
f.Date of the reportg.Auditor’s addressh.Auditor’s signatureNote:
a measure of uniformity in the form and content of theauditor’s report is desirable because it helps to promote thereader’s understanding and to identify unusual circumstanceswhen they occur.
It may be appropriate to use the term “independent auditor” in thetitle to distinguish the auditor’s report from reports that might beissued by officers of the entity, board of directors or by the auditor whomay not be required to abide by the same ethical requirements as theindependent auditor.