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Bahauddin Zakariya University: Institute of Banking and Finance
Bahauddin Zakariya University: Institute of Banking and Finance
Audit
Submitted to
Sir iqbal
Submitted By
Sharjeel Habib
Roll No. MBKE-18-18
Program
MBA (B&F) E
4th semester
a) Title
An appropriate title should be used to helps the reader to identify auditors report. The title
of auditor’s report is “Auditor’s report”.
b) Addressee
The report is usually addressed to the shareholder or the board of directors of the entity
whose financial statement are being audited.
c) Identification of financial statements
The report should identify that financial statements are audited. This should include the
name of entity, date and period covered b the financial statements.
d) Reference to the auditing standards
The report should indicate the auditing standards that are followed in conducting the
audit by reference to international auditing guidelines.
e) Expression of opinion n the financial statements
The report should clearly set forth auditors opinion in the financial statements of the
entity’s financial statements.
The words suggested to express the auditors opinion are give a true and fair view or in
accordance with IAS.
Sometimes auditors required to give an opinion as to “conformity with the law”
f) Signature
The report should be signed in the name of the audit firm, the personal name of the
auditors.
g) Auditors address
The report should name the specific location, which is usually the city name.
h) Date of report
The report should be dated. This inform about the event about which he become occurred
up to that date.
Unqualified Report
An unqualified opinion should be expressed when the auditor concludes that the financial
statements are presented fairly, in all material respects, in accordance with generally
accepted accounting principles.
Qualified Opinion
A qualified opinion should be expressed when the auditor concludes that an unqualified
opinion cannot be expressed but that the effect of any disagreement with management, or
limitation on scope is not so material and pervasive as to require an adverse opinion or a
disclaimer of opinion. A qualified opinion should be expressed as being ‘except for’ the
effects of the matter to which the qualification relates.
Disclaimer of Opinion
A disclaimer of opinion should be expressed when the possible effect of a limitation on
scope is so material and pervasive that the auditor has not been able to obtain sufficient
appropriate audit evidence and accordingly is unable to express an opinion on the
financial statements.
Adverse Opinion
An adverse opinion should be expressed when the effect of a disagreement is so material
and pervasive to the financial statements that the auditor concludes that a qualification of
the report is not adequate to disclose the misleading or incomplete nature of the financial
statements.