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AUDIT REPORT
Meaning of Audit report
An auditor’s report is the independent examination
and expression of opinion on the financial statements
of the company by appointed auditors.
The responsibility for the preparation of the financial
statements and the presentation of the information
included there in rests with management of the
company.
The auditor’s report is, therefore, the means by which
the auditors formally communicates the results of
his /her/audit to the members of the company as well
as to the readers of financial statements, such as
creditors, financial institutions, and all others who
have a stack in the company.
Con…
The auditor’s report does not guarantee the truth or
otherwise of the matter reported upon; it is
expression of auditors’ opinion on the financial
statements.
Purpose of audit report
The auditor’s report serves for the following
purposes.
1. It substantiates that the financial information of the
company reflects a true and fair picture of the
clients business.
2. It summarizes the result of the audit work carried
out by the auditors
Con…
3. It offers an opportunity to the readers of
financial statements such as creditors,
bankers, financial institutions, and potential
investors and others to get reliable insight
into the financial position of the company as
reflected by its profit and loss accounts and
the balances sheet.
4. Auditors’ report is the indicator of
credibility of financial statements.
Types of audit’ reports (opinions)