Question

7. Discuss auditors’ standard report.

Answer 1

Generally, Auditors are expected to express an opinion on true and fair view of financial statement based in form of his independent audit report based on the evidences obtain by the auditor during his audit procedure. This independent report of auditor is also drafted in standard format framed by Generally Accepted Auditing Standards (GAAS). Therefore, the report of auditor must be in the format as provided by GAAS unless there is any special circumstance where necessary changes are required in standard format of audit report of auditor. The standard audit report of auditor may be changed which are also allowed by GAAS if these changes are related to the opinion of audit regarding unqualified opinion, qualified opinion, adverse opinion, and disclaimer of opinion by auditor.

Generally, audit report is divided broadly in three parts like the responsibility of auditor and management of the organization, Scope of Audit of the organization, and auditors’ opinion on the financial statement. This report is framed by GAAS for the user of financial statement so that they can assess the performance and aware with any irregularity within the organization based on the opinion of the audit of the organization.