Which Audit Report You Require for your Business?
Abdulla Al Mulla Auditing of Accounts
Accounting, Audit, Corporate Tax, VAT & Excise Tax, Consultancy Services
Have you ever wondered why you need an Audit report or why your investor or the Bank asks you for an Audit report?
Doesn’t this thought of why the Stakeholder is easy with an?Internal Audit? Report While your Bank will insist on getting an External Audit Report puts you in a conflict?
Now, first and foremost, What Is an Audit Report??
An Audit report is produced by the auditor covering your?assets and liabilities? to demonstrate your present and potential financial status. It includes all of the financial facets of a business—the audit report for your financial statements shall usually be done after a span of 12 months.
As we know that the audit reports are used by various individuals who are having an interest in the organization as it includes:
Now, talking about the internal Audit for a company, it is an exercise to review companies’ strength of internal control, compliance to the company policies, review and improve company processes, and identify risky areas. Alongside it is an overside for fraud and error.
But when one has to do an External Audit report, the auditors are required to prepare an Audit comprising of either components, each portraying different meanings & messages related to each report.?
The Four main components are:
1.Unqualified Audit Report
The auditor issues an unqualified audit report as, in his view, the financial statements are free from material misstatement. This report demonstrates that the financial statements compiled and submitted by the company are accurate, fair, and in compliance with accounting standards, laws, and regulations.
领英推荐
2.?Qualified Audit Report
The auditor issued a qualified audit report as although he doesn’t find any material misstatements in the financial statements. However, certain matters are not compliant with Generally Accepted Accounting Principles (GAAP). A qualified audit report contains an extra paragraph to clarify that the audit report is not unqualified.
3.?Adverse Audit Report
The auditors issue an adverse report if the company’s financial statements do not give an accurate and fair view of the company’s financial position and performance.
4.?Disclaimer of Opinion
Suppose the auditor finds a significant chance of fraud or cannot establish or obtain evidence of the size of errors, which may be materially significant. In that case, he disclaims from giving an opinion on the accounts.
So, now you have to decode which Audit Report you require for your company.
An Audit Report benefits you in the following:
AM Audit Prepares your Audit Reports
With a team of trained professionals having extensive insights into various business systems, environments, and processes, we are the best. We understand that companies need the finest of systems, platforms, and infrastructure to successfully run their businesses. Therefore, we adopt a highly value-adding, risk-based auditing approach to improve their operational efficiency. For auditing services in Dubai.