Consideration of a Good Audit Report
Auditing is a systematic process of objectively obtaining and evaluating evidence assertions about economic actions and events to ascertain of correspondence between those assertions and established criteria and communicating the results to interested users. An audit report is a written opinion of an auditor regarding an entity’s financial statements.
The main objective of an audit is to enable an auditor to report to the members of the company with regard to the truth and fairness of the financial statements and other records of the company.
Consideration of a good audit report: There is much consideration of a good audit report. Some are given below –
Fairness: In a good report the first criteria should be fairness of the financial statements information.
Independence: The good reports should be independence because, without independence, it should not without giving a good report.
Conciseness: Another criterion of a good report. The information should be a concise format.
Follow AICPA: another consideration of good audit report. The auditor must express his/her opinion by following AICPA.
Clearness: The good-audit report should be clear and honest.
Full disclosure: In a good report the auditor disclosure all information about the financial statements.
Neutrality: In a good report the auditor should the expression of opinion by the natural way.
Sufficient information: In a good report the auditor should express sufficient information about the financial statements.
Completeness: Another consideration of good audit report should be complete.