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Audit Report
1. A report would be slightly more
comprehensive. It would include the
work done by the assurer, their
findings and their results. Again a
report may be for a specific area /
item etc.
2. The report is based on assumptions
and estimations
3. The report is actually an opinion by
the auditors and does not guarantee
the accuracy of the accounts.
4. The reports results in limited
responsibility for the auditor
5. Auditor Report is not a guarantee of
the absolute correctness & accuracy
of the books of accounts.
6. Auditor Report is later on found to
be wrong, he cannot be held
responsible since he has given
merely his opinion on the state of
affairs of the company.
Audit certification
1. A certificate would be more specific.
For example certifying the sales of
an outlet etc. This means that the
assurer has only checked and
certified the items or numbers
appearing in the certificate.
2. The certificate which is based on
actual figures and facts.
3. The certificate is a formal statement
by the auditors which guarantee the
accuracy of the accounts.
4. The certificate, since it is a duly
signed formal statement implicates
total responsibility for the auditors.
5. the auditor certificate serves as a
guarantee
of
the
absolute
correctness & accuracy of the books
of accounts
6. if the duly signed certificate is found
as wrong, he will be held responsible
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It should be convincing
It should be forceful
It should be unbiased
It should point out mistakes
It should be a constructive criticism and not be in reprimanding tone
It should offer constructive and timely suggestions to management.
It should be brief. If it is lengthy, the object of the report is defeated even if it
is well written.
In addition to above facts, an auditor should include other facts using his own
discretion. Other facts which are to be incorporate in the report are given below:
1. An auditor should include all the facts demanded by the Company Act.
2. Auditor should include the true and fairness of books of accounts as well as
facts where he is not able to satisfy himself.
3. Auditor should include all the important facts which directly affect the
financial position of the company.
4. An auditor should include in the report that the audit of books of account is
made in detail or applying test check.
5. If there is special situation, an auditor should include it in the audit report.
6. If auditor detects any frauds and errors during the course of audit, he must
include in audit report clearly stating their effect in financial statements.