Question

Submit a paper detailing types of audit reports for both issuers and nonissuers, and

the differences between the requirements for issuers versus nonissuers.

Include a discussion of the differences between audit reports, compliations and reviews.

Answer 1

There are 4 types of audit reports for both issuers and non-issuers -

1. Unqualified Report: this is the best sort of audit report. This is issued when the business is called out to be free from any kind of hiding. It’s when the auditor passes the business’s financial records free from any bias.
2. Qualified Report: it’s the almost opposite of unqualified audit report. Qualified report is issued when the business is not up to the expectations of the auditing standards but still free from bias.
3. Adverse Report: when there are misrepresentations in the information provided by the business, then the adverse report is issued.
4. Disclaimer: disclaimer is issued when the auditing could not be completed due to missing of information or the lack of cooperation.

Differences-

Auditors are made mandatory by the auditing standards when it comes for the issuers, to audit the reports according to the controls and issue audits on sox and internal controls.

While on the other hand, for non-issuers, the auditors don’t have to do it according to the controls. However, SOX is needed to be audit in this case also.

Each report is different and stated differently in the format of audit report. For example, qualified report contains extra columns stating why is it not unqualified?

In the opinion sector of audit report, the auditor writes down the opinions based on the type of audit report he has issued to the company.