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Types of Audit Reports

In: Business and Management

Submitted By hakin
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* UNMODIFIED REPORT * UNMODIFIED- The financial statement shows a true and fair view about the company’s financial position * There are no “if”, ”but” or additional information provided. * MODIFIED REPORT * The choices for QUALIFIED can be described in a matrix * Example of insufficient appropriate audit evidence
… Except as discussed in the following paragraph…
We did not observe the counting of inventories at 31/12/200X… unable to determine inventory quantities by other methods…
In our opinion, except for the effects of such adjustments to inventory, if any, had we been able to satisfy ourselves as to physical inventory… The financial statements give a true and fair view… * Example of disclaimer of opinion
… Except as discussed in the following paragraph…
We were not able to observe all physical inventories at 31/12/200X… unable to determine inventory quantities by other methods…
Because of the significance of the matters discussed… we do not express an opinion on the financial statements. * Example of Material misstatement / “except for”
As discussed in paragraph 17, no depreciation has been provided… not in accordance with International Accounting Standards…
The provision for the year should have been $X… profits would be decreased by $Y.
In our opinion, except for the matter referred to above, the financial statements give a true and fair view… * Example of Material misstatement /
“adverse opinion”
As discussed in paragraph 15, no bad provision for irrecoverable debts has been established for a major customer owing $10 million and who has gone into liquidation with little prospect of substantial recovery of amounts owed.
In our opinion, because of the effects of the matter referred to above, the financial statements do not give a true and fair…...

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