Audit report Types of audit report Contents of audit report Advantages of audit report Disadvantages of audit report

1. MEANING :- Audit report is the statement included in the
financial statement .It contains the opinion of the auditor
reports in financial statement .The audit reports to the
shareholder who have appointed him he has provide his
opinion on the truth and fairness financial statement . Thus the
audit protects the interest of share holder through audit report.

2. 1. Clean or unqualified report :- This is the best type of report
that a company can receive from an auditor. A clean report
is one that states that the financial statement of the company
fully comply with GAAP and are free of any material mis
statement.
2. Qualified opinion :-
 There are two situation in which a qualified report would be
issued by the auditor.
 If there are material misstatement is the financial statement
but they are not pervasive.

4. 1. Title of the report
2. Name of the addressee
3. Introductory paragraph
4. Scope
5. Opinion
6. Signature
7. Place of signature
8. Date of the report

5.  Advantages
o Ensures compliance
o Provides credibility
o Prevent fraud
o Useful for planning and
budgeting
 Disadvantages
o Auditing is costly
o Auditing requires experts
o Unsuitable for small business
o Risk of bribes and threats

6. COMPANY ABC
Address.
Report on the financial
statement
We XYZ have audited the
accompanying balance sheets
of ABC company as of
December 31/2020-21 and the
related statement of income,
earnings, and cash flows for
the years then ended and the
related notes to the financial
statement.
Management’s Responsibility
for the financial statement.
Management is responsible
for………..
Auditor’s responsibility
Our responsibility is to
express an opinion on these
financial statement based on
 OPINION
In our opinion the financial
statement referred to previously
present justly, in all material
respects ,the true financial position
of ABC company as of December
31,2020,2021 and 2020 and results
of its operations and its cash flows
for the years then ended in
conformity with the accounting
principles that are generally
accepted in the united states of
America.
(Signatuer)
(Date)