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A written opinion of an auditor in respect of an entity’s financial statements is known as audit report. This report is written in a standard format, as authorized by generally accepted auditing standards (GAAS). Certain variations are required in the report by GAAS, which depends upon the circumstances of the audit work that the auditor engaged in.
Three paragraphs are contained in a typical audit report and is given in Audit Report Assignment Help Online Service –
• The scope of the audit.
• The auditor’s view on the entity’s financial statements.
• The responsibilities of the auditor and the management of the entity.
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Different Types of Audit Reports
There are four types of audit reports- unqualified opinion, qualified opinion, adverse opinion and disclaimer of opinion. These four types of audit report is explained in Audit Report Assignment Help Online Service –
• Unqualified Opinion: – Unqualified opinion is also called as clean opinion. When an auditor determines that each of the financial records provided by the small business is free of any misrepresentations, then this type of audit report is said to be an unqualified audit report. The maintenance of the financial records in accordance with Generally Accepted Accounting principles (GAAP) is indicated by this type of audit report. An unqualified opinion is the best type of report received by a business. In this report the title bar consists of a title that includes the word “independent”. This title illustrates that it was prepared by an unbiased third party.
• Qualified Opinion: – A qualified opinion is issued by an auditor when a firm’s financial records have not been maintained in accordance with GAAP but there is not identification of misrepresentation. The writing of a qualified opinion is very much similar to that of an unqualified opinion with a difference that in qualified opinion there is an extra paragraph highlighting the reason why the audit report is not qualified. The details of the opinion can be found under Audit Report Assignment Help Online.
• Adverse Opinion: – An adverse opinion is the worst type of financial report that can be issued to a business. These reports indicate that the firm’s financial statements do not comply with GAAP. As well as, the financial statements or records provided by the business have been grossly misrepresented. A company must correct its financial statement and have it re-audited, when this type of report is issued.
• Disclaimer of Opinion: – When an auditor is unable to complete an accurate audit report, he/she issues a disclaimer of opinion. In this disclaimer it is stated that firm’s financial status could not be determined. This usually occurs due to absence of appropriate financial records or some other factor.
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