Audit Report

Audit Report

Reports are essential to audit and assurance engagements because they communicate the auditor's findings. Users of financial statements rely on the auditor's report to provide assurance on the company's financial statements.

The audit report is the final step of the entire audit process.

The auditors standard unqualified audit reports contain 7 parts

Title

Address

Introduction paragraph

Scope paragraph

Opinion paragraph

Signature

Date

1. Report Title:

Audit standards required the report be titled and that the title include the word "independent"

Ex: "independent auditors report"

"Report of independent auditor"

2. Address:

The report is usually addressed to the company, its stockholder, the board of director.

3. Introduction Paragraph:

First, it makes the simple statement that the CPA has done an audit.

Second, it lists the financial statements that were audited, including the balance sheet dates and the accounting periods for the income statement and statement of cash flows.

Third, the introductory paragraph states that the statements are the responsibility of management and the auditor's responsibility is to express an opinion on the statements based on audit.