1. Explain what are the elements of the auditor’s report - Explain what are the elements...

1. Explain what are the elements of the auditor’s report

- Explain what are the elements of the formal auditor report?

- What is the relevance of the different elements of the auditors report?

2. The auditor’s responsibility

- How is the auditor's responsibilities addressed in the auditors report?

- Do you think that the elements of the report adequately address the rights and responsibilities of the auditors and the stakeholders using the report, or is there any suggestion for improvement which you would make to the IFASB?

Solutions

Expert Solution

ANSWER:-

1). A report which is prepared by an Auditor after examining the accounts of the company is called as Audit Report OR Auditor’s Report.

--> Elements of Auditor’s Report:-

The auditor’s report should contain the address of the company for which the report is made.
It should have the title which clarifies or states that this is an auditor’s report.
Whether the report is prepared according to the guiding principles of the company or not should also be described in a separate paragraph in the report.
When the Report is signed by the authorities, the date of that day should be mentioned in the report.
It should also contain one paragraph where the auditor writes his personal opinion.
Signature of the Auditor should be there.
It should contain the true and fair information only.

All these elements in the Auditor’s Report show the good work of the auditor and the systematic vision of the company. Auditor is judged on the basis of the report. So, his should make it very clear that he shows the relevant, true and fair information.

2). The Auditor should perform the following responsibilities with respect to the Audit Report:-

He should see whether the report is addressed to the shareholders of the company.
Necessary documents should be kept with the audit report for the proof.
He is liable for the result of the report, so he should be very clear about what he is writing in his report.
To verify and analyze the accounts of the company properly.
He has to see whether the report is signed by him and other officials and it is signed according to the provisions of the company or not.
He has to complete the report before the deadline of the submission.
His opinion is the most needed in the Report.

ekkarill92 answered 9 months ago

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