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Auditing - What are the different types of audit reports and when should each be used?

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a. What are the different types of audit reports and when should each be used?

b. In what types of situations would an auditor be allowed to issue an unqualified audit report.

c. To what extent is the auditor liable for misstatements in the financial statements of the audited company?

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The response addresses the queries posted in 880 words with references.

//It is necessary for an individual or for a business to understand the various types of the audit reports, as it helps to present the financial position effectively. But before understanding the various types of the audit reports, one should know about the basic concept of the audit report.

Audit reports are a formal opinion or disclaimer issued by an auditor. These reports help in reporting financial information to the users such as investors, government, trade creditors, bankers, management, etc and advise them whether the financial statements are in accordance with GAAP or not. In other words, we can say that these reports help the users in identifying the trustworthiness and material correctness of the financial statements of the company. There are four types of audit reports namely, unqualified audit report, qualified audit report, disclaimer audit report and adverse audit report.

//After understanding the concept of audit report as per the direction; we will further know about the various types of audit reports. I am just providing an overview on the various types of audit reports, so that the purpose of various types of reports can be comprehended. More information can be added by using the other sources to enhance the knowledge, for example:

Unqualified report, the most common type of audit report indicates that the auditor has no doubts about the fairness of the presentation of financial statements. Moreover, it also shows that ...

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Ashish Sharma, MBA (IP)
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  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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