An audit report template is a professionally created document that helps businesses to easily calculate, review, analyze and present a detailed financial report of a certain prior period. The common reports are done on quarterly, 6 months or annually. An audit report is a very important document because it shows the position of the company financially. The report determines the financial situation of a company by covering the liabilities and assets of the company.
It also presents an expert decision on the company’s current and future financial status. Audit reports are legal requirement for all companies that trade publicly. The audited reports are also beneficial to institutions looking for new sources of funding or for business interested in improving their internal financial controls.
Types of audit reports:
Unqualified reports: This report is issued when an auditor establishes the records presented for review are error free. The unqualified reports further show that the records are in agreement with the Generally Accepted Accounting Principles (GAAP) guidelines. The unqualified audit report template has the independent word as title indicating the report is prepared by unbiased third party. It also has a three paragraphed body that indicates the auditor’s responsibilities, the purpose of the report and the report findings. The report cannot be concluded without the auditor dating the report and signing it.
Qualified Report: This is issued when the financial records do not show any misrepresentation of facts but when the structure is not in accordance with the GAAP standards. There is no major difference between an audit report template and an unqualified report but the later includes an additional paragraph that highlights why the reasons why the report is deemed qualified and not unqualified.
Adverse Report: This report is issued when the financial reports of the business are not correct. A business would receive this kind of report when the financial records are misrepresented and the structure is not even in terms with the guidelines of GAAP. Although the misrepresentation of the records can be as a result of human error, it is a financial fraud in accounting and thus, a lot of care should be given when giving out details and hence the need for an audit report template. When businesses receive this report, they should rectify the details and re-audit the records.
Disclaimer of Opinion: This report is issued when the auditor is unable to offer an accurate report. This can be caused by absence of the necessary financial records. On this occasion, the auditor issues a report stating that the financial status cannot be determined.
The audit report is important because it facilitates the performance, supervision and planning of the business. Therefore, it is imperative to ensure the structure of your report is professional, informative and clearly detailed. You can download our free clearly structured audit report templates to help you present your report in the correct way and thus, avoid misrepresentation.
Audit Report Template,