Types of audit report


There are different types of audit report, depending on the assessment made by an auditor about certain financial statements. They will measure the reliability of these statements and if they conform to the true image of the company.

The different types of audit report that can be presented in the day-to-day business audit vary in relation to the auditor's point of view.

After a pertinent evaluation of the financial statements of a company under observation, the professional auditor determines conclusions or opinions through a report. In other words, it puts into value judgment the annual accounts provided by the mercantile company and analyzes them from a legal and economic perspective.

On the other hand, the auditor adjusts to the existing normative regulation in order to make its assessment. Based on the legal framework in which the company develops its activity, it will issue a more or less favorable certificate based on the most common types of reports.

Main types of existing audit report

Based on your approval or denial of the information studied and if it conforms to the true image of the company, you will write one type of report or another:

  • Clean or unqualified opinion. It is the most sought after by the company since it determines that its performance is correct, as well as the financial information it transmits externally. That is, it conforms to the norm and gives a true image.
  • Qualified opinion. Sometimes the audit professional locates a series of controversial or reviewable points that make it impossible for the image to be completely faithful to the company. This happens in most cases due to errors in the presentation of data, the possible omission of information or the change of legal criteria in the period in question without having made the adaptation to the new regulations. Usually it does not carry any fiscal or administrative consequence but suggests its future revision and correction.
  • Adverse or negative opinion. In this mode, the auditor confirms that the information given for review does not conform to the regulatory framework and must be corrected. The financial statements do not accurately give the image and the real state of the company. It is also known as an unfavorable opinion, and the auditor is obliged to argue his decision based on the existing regulatory framework.
  • Abstention or denied opinion. This opinion is given when there is a limitation to the scope of the auditor's work and this has not allowed him to obtain sufficient evidence to make a judgment on whether the annual accounts reflect the true image of the company. This is the worst solution for the company, since the auditor cannot issue an opinion on the annual accounts.

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