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Audit › Audit report

 December 20th, 2017  | Audit

Audit is the most important financial action that is taken by any company and the businesses in this regard make sure that the process is carried in line with the requirements. The audit’s outcome is a report that is known as the audit report which is considered to be the best and the most authentic document when it comes to financial documentation. It has several parts and all should be completed in order to make sure that the authentic analysis is presented in front of the management, stakeholders and the company’s board of director so they can plan the actions and future decisions accordingly. To get the best form of audit report it is always advised to let the auditor work in an independent environment and to never come in the way of the audit that is being performed. The audit report is only authentic when it is presented to the general public with the help of detailed analysis and financial reporting ethics are also met. The audit report also ensures that the business forecasts the financial behavior to generate more profit as well as revenue so that the financial targets can be achieved. It is the audit report that also ensures that the decisions are always taken in the best interest of the business so that it flourishes and captures the market to promote the products and services. To achieve all these advantages following are some of the salient features of the audit report that should be included so that the document is deemed to be complete:

  1. Auditor’s signature

The auditor’s signature is the most important part of the audit report and it is a section that validates the authenticity of this financial document. Keeping this fact in view it is something that a stakeholder or the investor should look for once the report has been presented. It should either be signed by the independent auditor or the firm that is carrying the audit on behalf of the business. Absence of this part not only makes the audit report ambiguous but according to new Nigerian accounting standards the report is not authentic and acceptable without the signature of the auditor.

  1. Opinion paragraph

The opinion paragraph clearly shows the financial health of the company so this part is related to the stakeholders and the investors. It is that part of the audit report which makes sure that the investment management is handled in the most effective manner. This paragraph also ensures that the methods that are applied to extract the audit report are also mentioned by the auditor so that the validity of the claims made is confirmed. The auditor also adds the related points to ensure the expert opinion is added and the financial document is explained in more detail.

Most businesses have spent enormous time in compiling their financial records and information in an accurate manner. However it all goes in vain if the correct audit reports are not presented in line with the general accounting requirements of the industry. The audit reports are considered to be the primary tool which ensures that the best has been presented to the general public so that the future of the company is decided in the best possible manner. The audit reports make sure that the overall financial management as well as the financial statements of the company is thoroughly investigated to make sure that the errors as well as manipulations are detected and removed in time to foster the client company and investor company relationship. In whole the audit reports are the best documents that present the financial health of the company to the people who are willing to do business with the organization. There are tens of thousands of firms that are working within this area and making sure that the best services are provided to the businesses when it comes to audit reports presentation but careful approach should always be practiced by the organizations to make sure that the best company or firm is chosen in this regard. There are several features of the audit reports that make it a legal document and also make sure that the company is highlighted to investors as well as the potential clients. Following are some of the most important features or the aspects of the audit reports:

  1. Signature

The audit reports are not considered to be complete without the sign of the appropriate authority. It means that the auditor, firm or both should sign it to make sure that the report presented is authentic and in line with the requirements of the company as well as the accounting standards. The signature also ensures that the audit reports are authentic and the related statements or the company accounts have been checked thoroughly and the details have been included for the general public and the stakeholders to review. The most appropriate method in this regard is to make sure that the audit report has been duly signed in name of accounting firm and the auditor.

  1. Identification

The audit report that has been presented to should identify the areas of the financial records that have been checked by the auditor. It should mention the financial statements that have been thoroughly audited by the auditor in this regard to make sure that audit report is genuine and authentic. The identification should also mention the auditing standards that have been met in this regard or used to get to the desired outcome. The report should include the name of the entity as well as the related procedures that have been adopted as per the organizational structure.

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