Updated April 24, 2012
As mentioned earlier, once a Company’s assets or gross revenues exceed a particular threshold, there is an automatic requirement to have an audit of its financial position and results conducted. There are various forms of audit reports; however the most common one is the standard unqualified audit report. The main components of such a report are a statement on what has been done including the exact statements which comprise the financial statements, a statement of management’s responsibility, the auditor’s responsibility and the audit opinion.
Upon the introduction of the Clarified International Standards on Auditing (ISAs), effective for periods ending on or after December 14, 2010, the wording of the standard auditor’s report was amended. The main change has occurred to the paragraph which addresses management’s responsibility for the financial statements. Within the section on the auditor’s responsibility, only one additional word was inserted.
An example of the standard unqualified report for periods ending before December 14, 2010 can be found by clicking on the following link: Standard Unqualified Report – For periods ending before December 14, 2010
An example of the standard unqualified report for periods ending on or after December 14, 2010 can be found by clicking on the following link: Standard Unqualified Report – For periods ending on or after December 14, 2010
As auditors perform a wide range of services, there are various other forms of reports which can be used to fit the particular circumstance. Other services include reviews, agreed upon procedures, compilation of financial information, reviews of interim or prospective financial information or some other special purpose engagement. Examples of the formats of these reports can be found by clicking on the following links: