Report writing


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Report writing

  1. 1. Published by Published by Types of Audit report: Unqualified or clean report: Any condition does not impose or he does not comment specifically but the express his opinion in the report. It is right. This is called unqualified or clean report. Qualified Report:- When an auditor express his opinion in the report which is condition and commutative. This is called qualified report but when he submit the report then he mentions every problem Auditor Report 1
  2. 2. Report with Disclaimer: It remains different opinion between auditor and authority on the expressed information and an auditor does not like to take any responsibility about this matter on. If he is unable to give his opinion. Then he will express that report is called report with disclaimer.Negative Report: When an auditor express that, there and reverent belief has not been published in the amount of business then it is called negative report.Compartmental Report: When an auditor can not organized and express his opinion on financial description but when he less there is few error in the financial description depend on its he expresses his opinion is called compartmental report.Auditor Report 2
  3. 3. Auditor’s opinion: The auditor’s opinion is the most important part of the audit report that is provided with company accounts. The auditor’s opinion may be Unqualified, Qualified, Disclaimer or Adverse. The auditor expresses his opinion about the financial information reported in annual statements of accounts.Auditor Report 3
  4. 4. Unqualified Opinion:An unqualified or “clean” opinion means that the financial statements are fairly presented in the auditors’ opinion, are free of material misstatements, and have been prepared in accordance with generally accepted accounting principles, consistently applied. That’s respect with regard to: The final accounts being in agreement with the books of account. The final accounts being true and fair summary. The discloser of information in final accounts as per the requirements. Auditor Report 4
  5. 5. Qualified Opinion:  He is not satisfied in material respects with matters concerning the areas of report.  His not satisfaction is die to circumstance such as limitations imposed on scope of audit work, disagreement with management or uncertainty over financial information .  The effect of his disagreement, uncertainty or limitation is not as material as it compels the auditor to give an adverse opinion or to state a disclaimer Auditor Report 5
  6. 6. Adverse Opinion:In an adverse opinion, the auditors are clearing stating their opinion that the financial statements are not fairly presented in accordance with the accounting and reporting principles intended, or that there are material misstatements. There will be a paragraph explaining the reason for their negative opinion.Auditor Report 6
  7. 7. Disclaimer:A disclaimer indicates that the auditors were engaged to perform an audit, but are unable to express an opinion. This may be due to a lack of independence on the auditors’ part; limitations on the scope of the audit, for example, the inability to obtain sufficient evidence; or may be due to substantial doubts about the entity as a “going concern”, or material uncertainties for which the auditors were unable to obtain reasonable assurance about the outcome.Auditor Report 7
  8. 8. When to qualify:The auditor should not use the weapon of qualifying his report on petty ground. He must qualify the report only if his non-satisfaction in respect matter. The following matters are examples requiring qualification in audit report: Non –provision for depreciation Inadequate provision made for bad and doubtful debts Valuation of investment at cost price when the market price is far below it. Contingent liability not disclosed Violation of provisions of company law-payment of remuneration to managerial personnel in excess of limits Auditor Report 8 without approval.
  9. 9. How to qualify:While drafting a qualified report, the auditor should bear in mind the following points: It should be clear and unambiguous so that the readers understand what the auditor wants them to know . It should be concise, but conciseness should not sacrifice clarity It should be specific and to the point. The amount involved if any , should be clearly stated. It should state the effect of matter under report on the accounts. The opinion of the auditor expressed in the report should not be capable of misinterpretation.Auditor Report 9
  10. 10. Precautions on Report Writing When a Report on a subject is desired to be written, the writer should be a competent person being familiar with the issue. A Report should be written in peaceful atmosphere giving full concentration to the matter. The writer should have easy access to the related material, files and data which he can reflect in his Report. The writer in the report should also mention certain important facts, which are not mentioned in the file and were verbally discussed or got through on the telephone. Before giving final shape to the Report it should be got approved from the Head of the Section. While writing a Report it is also important that the source of information, with date, place and quantity be mentioned.Auditor Report 10
  11. 11. Report writingAuditor’s reportToThe members of XYZ LimitedWe have audited the financial statements on page …. To … in accordance with approved Auditing Guidelines.In our opinion the financial statements give a true and fair view of the state of company’s affairs at Dec,31,2010 and of it s profit and changes in financial position for the year ended in accordance with generally accepted accounting principles applied on a basis consistent with that on the preceding year.Auditor Report 11
  12. 12. We further report as required by the companies act 1994 that in our opinion 1. We have obtained all the information and explanation we considered necessary for the purposes of our audit. 2.The balance sheet and profit and loss account are drawn up in conformity with the law. 3.Subject to the uncertainty referred to above the balance sheet exhibits a true and fair view of the state of the company’s affairs according to the best of our information and explanation given to use and as shown by the books of the company 4. Proper books of account have been kept by the company as required by law Dhaka ABC and Co 15th July 2011Auditor Report Charted Accountants 12
  13. 13. Qualified reportAuditor’s ReportTo the members of XYZ LimitedWe have audited the financial statements on page ….to …in accordance with approved Auditing standards.As discussed in Note- to financial statements thecompany is defendant in a lawsuit alleginginfringement of certain patent rights and claimingroyalties and punitive damages. The company hasfiled counter action, and preliminary hearings anddiscovery proceedings on both actions are inprogress. Company officers and counsel believe thecompany has a good chance of prevailing but theultimate outcome of the lawsuit cannot presently bedetermined and no provision for any liability that mayresult has been made in the financial statement.Auditor Report 13
  14. 14. In our opinion, subject to the effect of suchadjustments, if any might have been required had theoutcome of the uncertainty referred to in thepreceding paragraph been known, the financialstatements… give a true and fair view of the state ofthe company’s affairs at 31st Dec 2010 and of its profitand changes in financial position for the year ended inaccordance with generally accepted accountingprinciples applied on a basis consistent with that thepreceding yearAuditor Report 14
  15. 15. We further report as required by the companies act1994 that in our opinion1. Except as stated above we have obtained all theinformation and explanations considered necessaryfor the purposes of our audit.2.The balance sheet and profit and loss account aredrawn up in conformity with law.3.The balance sheet exhibits a true and fair view ofthe state of the company’s affair according to the bestof our information and explanation given to use andas shown by the books of the company4. Proper books of account have been kept by thecompany as required by the companies act1994Dhaka ABC and Co15th July 2011 Charted AccountantsAuditor Report 15