Standards of Reporting
Auditor’s report means the expression of auditor about the financial statement. The report of a certified auditor or auditors stating the accuracy of financial statements of a public limited company is known as auditor’s report. An auditor’s report provides an opinion on the validity and reliability of a company’s financial statements. It an essential part of a company’s annual report. At the end of every accounting year, the company has to prepare a balance sheet, profit and loss account, cash flow statement, and other related schedules to support the accounts.
Standards of reporting: There are three types of standards of reporting. They are given below –
Qualified report: The auditors of opinion because of either a scope of opinion because of a departure from GAP. But overall the financial statement presents fairly.
Unqualified report: Unqualified reports means not maintain GAP, client imposed condition impose.
Other forms of the report: Other forms of the report are given below –
Disclaimer: The auditor disclaims an opinion on the financial statements either because there is insufficient competent evidence to form an opinion on the overall financial statements or because there is a lack of independence.
Adverse: The auditor opinion states that the financial statements do not present fairly in conformity with GAP because the departure materially affects the overall financial statements.