Types of Audit report:

Unqualified or clean report:

Any condition does not imposeor he does not comment specifically but theexpress his opinion in the report. It is right.This is called unqualified or clean report.

Qualified Report:-

When an auditor express hisopinion in the report which is condition andcommutative. This is called qualified reportbut when he submit the report then hementions every problem

Auditor Report 1

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2Auditor Report

Report with Disclaimer:

It remains different opinion between auditor and authority on the expressed information and an auditor does not like to take any responsibility about this matter on. If he is unable to give his opinion. Then he will express that report is called report with disclaimer.

Negative Report:

When an auditor express that, there and reverent belief has not been published in the amount of business then it is called negative report.

Compartmental Report:

When an auditor can not organized and express his opinion on financial description but when he less there is few error in the financial description depend on its he expresses his opinion is called compartmental report.

Auditor Report 3

Auditor’s opinion:

The auditor’s opinion is the most important part of the audit report that is provided with company accounts. The auditor’s opinion may be Unqualified, Qualified, Disclaimeror Adverse. The auditor expresses his opinion about the financial information reported in annual statements of accounts.

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Unqualified Opinion:An unqualified or “clean” opinion means that the

financial statements are fairly presented in the

auditors’ opinion, are free of material misstatements,

and have been prepared in accordance with

generally accepted accounting principles,

consistently applied. That’s respect with regard to:

The final accounts being in agreement with the

books of account.

The final accounts being true and fair summary.

The discloser of information in final accounts as per

the requirements.

Auditor Report 5

Qualified Opinion:

He is not satisfied in material respects with matters concerning the areas of report.

His not satisfaction is die to circumstance such as limitations imposed on scope of audit work, disagreement with management or uncertainty over financial information .

The effect of his disagreement, uncertainty or limitation is not as material as it compels the auditor to give an adverse opinion or to state a disclaimer

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Adverse Opinion:

In an adverse opinion, the auditors are clearing stating their opinion that the financial statements are not fairly presented in accordance with the accounting and reporting principles intended, or that there are material misstatements. There will be a paragraph explaining the reason for their negative opinion.

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Disclaimer:

A disclaimer indicates that the auditors were engaged to perform an audit, but are unable to express an opinion. This may be due to a lack of independence on the auditors’ part; limitations on the scope of the audit, for example, the inability to obtain sufficient evidence; or may be due to substantial doubts about the entity as a “going concern”, or material uncertainties for which the auditors were unable to obtain reasonable assurance about the outcome.

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When to qualify:

The auditor should not use the weapon of qualifying his report on petty ground. He must qualify the report only if his non-satisfaction in respect matter. The following matters are examples requiring qualification in audit report:

Non –provision for depreciation

Inadequate provision made for bad and doubtful debts

Valuation of investment at cost price when the market price is far below it.

Contingent liability not disclosed

Violation of provisions of company law-payment of remuneration to managerial personnel in excess of limits without approval.

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How to qualify:

While drafting a qualified report, the auditor should bear in mind the following points:

It should be clear and unambiguous so that the readers understand what the auditor wants them to know .

It should be concise, but conciseness should not sacrifice clarity It should be specific and to the point. The amount involved if

any , should be clearly stated. It should state the effect of matter under report on the

accounts. The opinion of the auditor expressed in the report should not be

capable of misinterpretation.

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Precautions on Report Writing

When a Report on a subject is desired to be written, the writer should be a competent person being familiar with the issue.

A Report should be written in peaceful atmosphere giving full concentration to the matter.

The writer should have easy access to the related material, files and data which he can reflect in his Report.

The writer in the report should also mention certain important facts, which are not mentioned in the file and were verbally discussed or got through on the telephone.

Before giving final shape to the Report it should be got approved from the Head of the Section.

While writing a Report it is also important that the source of information, with date, place and quantity be mentioned.

Report writing Auditor’s report

To

The members of XYZ Limited

We have audited the financial statements on page …. To

… in accordance with approved Auditing Guidelines.

In our opinion the financial statements give a true and fair

view of the state of company’s affairs at Dec,31,2010

and of it s profit and changes in financial position for

the year ended in accordance with generally accepted

accounting principles applied on a basis consistent with

that on the preceding year.

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We further report as required by the companies

act 1994 that in our opinion

1. We have obtained all the information and

explanation we considered necessary for the

purposes of our audit.

2.The balance sheet and profit and loss account

are drawn up in conformity with the law.

3.Subject to the uncertainty referred to above the

balance sheet exhibits a true and fair view of the

state of the company’s affairs according to the

best of our information and explanation given to

use and as shown by the books of the company

4. Proper books of account have been kept by the

company as required by law

Dhaka ABC and Co

15th July 2011 Charted Accountants Auditor Report 12

Qualified reportAuditor’s Report

To the members of XYZ Limited

We have audited the financial statements on page ….

to …in accordance with approved Auditing standards.

As discussed in Note- to financial statements the

company is defendant in a lawsuit alleging

infringement of certain patent rights and claiming

royalties and punitive damages. The company has

filed counter action, and preliminary hearings and

discovery proceedings on both actions are in

progress. Company officers and counsel believe the

company has a good chance of prevailing but the

ultimate outcome of the lawsuit cannot presently be

determined and no provision for any liability that may

result has been made in the financial statement.Auditor Report 13

In our opinion, subject to the effect of such

adjustments, if any might have been required had the

outcome of the uncertainty referred to in the

preceding paragraph been known, the financial

statements… give a true and fair view of the state of

the company’s affairs at 31st Dec 2010 and of its profit

and changes in financial position for the year ended in

accordance with generally accepted accounting

principles applied on a basis consistent with that the

preceding year

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We further report as required by the companies act

1994 that in our opinion

1. Except as stated above we have obtained all the

information and explanations considered necessary

for the purposes of our audit.

2.The balance sheet and profit and loss account are

drawn up in conformity with law.

3.The balance sheet exhibits a true and fair view of

the state of the company’s affair according to the best

of our information and explanation given to use and

as shown by the books of the company

4. Proper books of account have been kept by the

company as required by the companies act1994

Dhaka ABC and Co

15th July 2011 Charted Accountants Auditor Report 15