Question

What are the different types of audit reports that an auditor can issue? What do each them mean?

Answer 1

1). Qualified Audit Report:

A Qualified Audit/Opinion report is given when the auditors are not able to fully satisfy themselves on all aspects of the company's financial status. Specific records may be missing or some parts of information may not be up to GAAP. In some cases, the auditor may be able to access data but not fully confirm it. All these problems are documented and make the auditor's evaluation more negative.

2). Disclaimer of Audit Report:

Disclaimer audit report is the report that issues to the financial statements where there are mater to auditor’s independence and those mater cause auditor not be able to obtain sufficient audit’s evidence to support their opinion.

3). Adverse Report:

An Adverse Opinion report is a negative response that occurs only when the auditor finds the company's records as a whole are uninformative and not in line with GAAP, or if the financial records have been falsified or are in other ways erroneous. The accountants add paragraphs explaining these problems and giving their opinions as to how the records differ from GAAP.

4). Unqualified Opinion:

An unqualified opinion indicates that the information presented in a company’s financial report is clean. As in a medical patient’s clean bill of health, an unqualified opinion shows that the audited financial statements can be presumed to be free from misstatements.