What does an audit report contain?

Most of the reports on the audit of the budget work a clean bill, or a trial ver sion. At the other end of the spectrum, the auditors shall certify that the stat ements are misleading and should not be relied upon. This negative audit report is called a negative opinion. This is the stick that auditors carry. You have th e power to the statements of a company a negative opinion and does not want busi ness. The threat of an adverse opinion almost always motivates a business to giv e way to the auditor and its modification or disclosure, to avoid the kiss of de ath for a negative opinion. An adverse opinion states that the financial stateme nts of subsidiaries are misleading. The SEC will not tolerate adverse opinions b y auditors of public companies: it would suspend trading of shares of stock of a company if the company received a negative opinion of the auditor CPA. A change in the auditor's report is very serious - if the accounting firm says i t has serious doubts about their ability to continue to conduct its business. A current concern is to continue a business that sufficient financial resources an d impetus to the normal work in the near future and could be a bad turn of event s to absorb, without relying on its debt default has. A current concern is not f acing a looming financial crisis or financial pressure. A company may be in some financial difficulties, but overall still be judged in operation. Unless eviden ce to the contrary, takes on the CPA auditors that the company "going concern" i s. If an examiner has serious doubts that the deal "going concern", this doubt i n the auditor's report are explained.

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