The term audit report refers to the disclaimer that has been issued by the internal auditor or the external one showing all the stakeholders, investors and the board of directors that what has been done while the accounts were being checked. The effect of the audit report is always multidimensional and for the same reason it shows that what the financial health of the company indicates, what should be done to improve it, what are the investment opportunities when it comes to a particular business or what should be done by investors as well as the stakeholders to make sure that they get maximum advantage from the issue that company. The audit report should therefore always be presented in the best possible manner and when it comes to internal auditor then it is feasible to make sure that the report is presented to the board of governors before any action has been taken in relation to the outcome. The audit report is also required by several other entities that want to make sure that financial information of the company is disclosed to them if they want to do any business in this regard. Making of the audit report therefore also makes sure that the auditor is professional and knows the different terms that are related to the audit as well as the professional accounting. Making an audit report is not an easy task so the organization should make sure that an accounting firm with sound reputation is hired so the outcome is very much in line with the general accounting requirements of the organization. There are several benefits of the audit report and following are some of them explained in great detail:
- Education of the owners
It is one of the most important features of an audit report. It makes sure that the business owners get to know their business and take necessary steps to make sure that the business integrity is persevered all the times. Business owners should work closely with the internal as well as external auditors to make sure that they discover new horizons for their business and find routes that are necessary for the expansion. Making a professional relationship with the accounting firms also ensure that the best report is generated which is error free and in line with the laws and rules of the accounting.
- Limited issues and problems
The audit report limits the legal, tax and accounting issues for the business. If the report has been created internally then it is very important before the external audit is conducted. The internal audit report highlights all the issues that can affect the external audit and lead the business into trouble. The correct accounting and financial management information is something that is required by the business and it should be the main aim of the audit report.
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