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Components of IA Report
Components of IA Report
AUDIT REPORT
GROUP 4:
Presenters:
Ang, Pauline Grace A.
Cantre, Marnie C.
Cattiling, Hillary Jo Allison
Guerrero, Kimberly Ann L.
Jarata, Queen Nicole T.
Mengorio, Leanna May C.
Professor:
Marie Antonette A. Bobon, CPA, MBA
Objectives:
What is Auditing?
What are the Kinds of Auditing and its differences?
What is an Internal Audit Report?
What are the Components of Internal Audit Report?
What are the different Types of Opinion an auditor
can issue?
What are the reasons for modifications of
conclusion?
Auditing
- Accumulation and evaluation
of evidence about information
Internal Audit
- Independent, Accuracy,
Consulting Activity
- Reported to BOD and
Senior Management
External Audit
- Independent examination
of FS
- Reported to owners of
the company
Internal Audit
Report
External Audit
Report
Importance: detecting
and preventing fraud,
testing internal control,
and monitoring
compliance with
company policy and
government regulation
Importance: create
transparency and
enhance a companys
public image,
examine company
records and operations
Internal Audit
Report
Formal Report
- Significant results
pertinent for
immediate sharing
w/ owner
Interim Report
- Summary of the
procedures and
techniques used for
completing the
audit
Introduction
Body
Review
PUBLIC
SECTOR
PRIVATE
SECTOR
Objective: To serve
the citizens of the
country
Objective: to earn
profit
Areas: Transport,
Agriculture, Insurance,
etc.
Areas: Manufacturing,
Construction,
Pharmaceuticals etc.
Public Client
- Title includes the
words Registered
and Independent
- Includes the city and
state where the
auditors report has
been issued.
- Additional report on
the clients internal
control over financial
reporting
TYPES OF OPINIONS
1. Unqualified Opinion/Clean Opinion has no
reservations; standard report; fairly presented with GAAP
2. Qualified Opinion with reservations; some are not
fairly presented with GAAP
3. Adverse Opinion - not presented fairly with GAAP
4. Disclaimer Opinion - unable to form an opinion; no
opinion
Effect
Scope
Limitation
Material
Material and
Pervasive
Misstateme
Material
nt
Material and
Pervasive
Type of
conclusion
Qualified
Disclaimer
Qualified
Adverse
References:
https://na.theiia.org/training/courses/Pages/Audit-Report-Writing.aspx
http://www.icpak.com/wp-content/uploads/2015/09/Internal-AuditReporting-Writing
http://smallbusiness.chron.com/4-types-audit-reports-3794.html
http://www.investopedia.com/terms/a/auditors-opinion.asp
https://www.iia.org.au/aboutIIA/definitionOfIA.aspx
http://keydifferences.com/difference-between-public-sector-and-privatesector.html
Auditing and Assurance Services (15th Edition) by A. Arens, R. Elder
and M. Beasley