Question

Identify the components of the standard audit report:

Answer 1

Audit report- An audit report is a written opinion of an auditor regarding an entity's financial statements. The report is written in a standard format, as mandated by generally accepted auditing standards. An auditor express his opinion on the financial statements of the company in his audit report.

Components of standard audit report -
1) Title;
2) Addressee;
3) Introductory paragraph that identifies the financial statements audited;
4) A description of management’s responsibility for the preparation and the fair presentation of the financial statements;
5) A description of the auditor’s responsibility to express an opinion on the financial statements and the scope of the audit, which includes:
      (i) A reference to the ISAs, and
      (ii) A description of the work an auditor performs in an audit.
6) An opinion paragraph containing an expression of opinion on the financial statements and a reference to the applicable financial reporting framework used to prepare the financial statements (including identifying the country of origin of the financial reporting framework when IFRS or International Public Sector Accounting Standards (IPSAS) are not used);
7) Where relevant, reporting on any other reporting responsibilities in addition to the responsibility to report on the financial statements;
8) Date of the report;
9) Auditor’s signature; and
10) Auditor’s address