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PRESENTATION
ON
AUDIT REPORT
Presented By:
Minali Jain - 20130128
Dushyant Bhati - 20130399
Presented to:
Dr. Siddharth Ja...
INTRODUCTION
 Audit report is the presentation of collected and considered
facts. It is prepared in such a way that those...
TRUE AND FAIR CONCEPT
After verifying accounts of the company, Auditor has to give a
report whether the accounts of the c...
All the assets and liabilities of the company shown
in the balance sheet of the annual accounts are
presented properly, m...
MEANING OF AUDIT
REPORT
 . A report prepared by the auditor after examining the
accounts of a company is called Audit Rep...
DEFINITION OF
AUDIT REPORT
“A Report is a statement of collected and considered facts, so drawn up as to
give clear and co...
BASIC ELEMENT OF
AUDIT REPORT
1. Title
2. Addressee
3. Opening or Introductory Paragraph
4. Scope Paragraph
5. Opinion Par...
IMPOTANCE OF AUDIT
REPORT
1. Importance to the share holders:
2. Importance to the Directors:
3. Importance to the Credito...
TYPES OF AUDIT REPORT
 Clean Report
Qualified Report
1- Clean Report
 Its also known as Unqualified Report. It is given by the
auditor if he is satisfied with the fairness of...
2 - Qualified Report:
 When the auditor is not satisfied with the accounts presented to him if he
finds any discrepancy i...
DIFFERENCE BETWEEN
ACCOUNTANCY &AUDITING
Accounting Auditing
1. It’s a continuous process
carried out throughout the
year....
3. An accountant is a
employee of the company.
3. An auditor is an
independent
professional.
4. An accountant gets regular...
Audit report
Audit report
Audit report
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Audit report

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Audit report

  1. 1. PRESENTATION ON AUDIT REPORT Presented By: Minali Jain - 20130128 Dushyant Bhati - 20130399 Presented to: Dr. Siddharth Jain
  2. 2. INTRODUCTION  Audit report is the presentation of collected and considered facts. It is prepared in such a way that those people who do not have information about the matter of the report can be informed clearly in brief. According to Section 227 (2) of Companies Act, it is auditor’s duty to verify the accounts of the company carefully and give a report about whether the accounts present true and fair condition of the Company or not ?
  3. 3. TRUE AND FAIR CONCEPT After verifying accounts of the company, Auditor has to give a report whether the accounts of the company present “true and fair” economic condition of the company or not ? In that case, it is necessary to understand what the meaning of words is “true and fair”. It can be said that the accounts of the company show “true and fair” economic condition of the company only when accounts have been prepared according to the accounting principles and accounting methods, capital and revenue transactions have been allocated properly, information is given according to the second part of residual-6 of Companies Act, total information is given as per provisions of law and shown in law.
  4. 4. All the assets and liabilities of the company shown in the balance sheet of the annual accounts are presented properly, means no assets or liabilities of the company have been left, or have not been shown wrong, its valuation has been done according to the accepted principles, there is provision or depreciation on fixed assets, contingent liability is shown with provision regarding it. Thus, if the real condition of assets and liabilities shown in the balance sheet, it is called “true and fair” condition.
  5. 5. MEANING OF AUDIT REPORT  . A report prepared by the auditor after examining the accounts of a company is called Audit Report  Audit report is the medium through which an auditor expresses his opinion on the financial state of affairs of the clients business. It summarizes the results of the audit work conducted by the auditor.
  6. 6. DEFINITION OF AUDIT REPORT “A Report is a statement of collected and considered facts, so drawn up as to give clear and concise information to persons, who are not already in possession of the full facts of the subject matter of the report.”
  7. 7. BASIC ELEMENT OF AUDIT REPORT 1. Title 2. Addressee 3. Opening or Introductory Paragraph 4. Scope Paragraph 5. Opinion Paragraph 6. Date of Report 7. Place of Signature 8. Auditor’s Signature
  8. 8. IMPOTANCE OF AUDIT REPORT 1. Importance to the share holders: 2. Importance to the Directors: 3. Importance to the Creditors of the Company: 4. Importance to the Debenture holder of the Company: 5. Importance to the Investors: 6. Importance to the Government:
  9. 9. TYPES OF AUDIT REPORT  Clean Report Qualified Report
  10. 10. 1- Clean Report  Its also known as Unqualified Report. It is given by the auditor if he is satisfied with the fairness of Balance Sheet and Profit and Loss account with all the contents of the financial statements and he is satisfied with evidences, documents and explanation given by his clients  If no defect, illegal act, frauds are detected during the verification of the accounts of the company and if profit and loss account in the annual account of the company presents true and fair profit or loss and balance sheet shows true and fair economic condition as of the date and auditor presents whatever report are called clean report. Clean report is also called Report Without Defect or Routine Report or Regular Report.
  11. 11. 2 - Qualified Report:  When the auditor is not satisfied with the accounts presented to him if he finds any discrepancy in the recording of the transaction, if he thinks that the Balance Sheet and P&L account do not exhibit true and fair view of the business then he submits Qualified Report.  During the verification of the accounts of the company, any defect, illegal act, frauds, breach of provision of law is detected and the profit loss account does not show true and reasonable profit or loss of the concluding year and balance sheet does not show the true and fair economic condition as of that date, when auditor gives report about it is called qualified audit report. This type of audit is also called Improved Report or Limited Report.
  12. 12. DIFFERENCE BETWEEN ACCOUNTANCY &AUDITING Accounting Auditing 1. It’s a continuous process carried out throughout the year. 1. It’s a one time activity after the closure of accounting year. 2. No prescribed qualification is required to be an accountant. 2. He must be the member of Institute of Chartered Accountants of India to become an auditor.
  13. 13. 3. An accountant is a employee of the company. 3. An auditor is an independent professional. 4. An accountant gets regular salary for his work. 4. He gets remuneration for his professional work. Audit fees. 5. Accounting is concerned with recording of business transactions systematically. 6. Accounting precedes, auditing. 5. Its concerned with verification of accounts prepared by the accountant. 6. Auditing succeeds accounting.

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