A financial audit report is a report of a corporation’s financial statement accuracy. Publicly traded companies are required to undergo an audit. These audits have guidelines published by several organizations such as: GAAP, GAAS and IFRS. Audit reports are a vital function in keeping corporations honest with their financial data. This is a system of checks and balances. Audit reports are published with the Securities and Exchange Commission (SEC).
Things You'll Need
- CPA Licence
Audit Report Writing
Use the standard format for all financial audit reports. The standard format follows this pattern: Introduction, Responsibilities of Directors and Auditors, Basis of Opinion and the Opinion. Develop your report using this, and no other, format. Write your report in the business letter format. This document will look and appear as any other business letter. Be clear, concise and use an economy of words.
Begin your report with a title and header that reads: "Independent Auditor's Report." Include the firm's name, author's name and business address in the heading of the addressee section of the letter. Address this document to the board of directors and shareholders of the corporation. This is prescribed by Generally Accepted Accounting Principals (GAAP). Understand that this document will be published for public scrutiny by the Securities and Exchange Commission (SEC). Write this letter for all audiences. Do not dumb down the material. Write the document using trade terms and lingo.
Write the introduction so that it includes the name of the corporation being audited and the business year that the audit examines. Write the next section to include a description of the party’s responsibilities. Tell the readers that it is the responsibility of the audit firm to issue an opinion and management’s responsibility to create the financial statements that the audit will be based off of.
Write the basis of opinion. Be very descriptive and concise. Continue to write in businesses style using an economy of words. Declare the audit was conducted in accordance with Generally Accepted Audit Standards (GAAS). Disclose all of the types of information that was examined and describe the basic framework of the audit itself. Convince your audience that your opinion is correct and well documented. You must be clear and intelligible.
State your opinion. The opinion should be written in the first sentence of this paragraph. Speak plainly and clearly. Do not cloud the opinion with lots of business lingo here. You will choose an unmodified opinion, qualified opinion, adverse opinion or disclaimer of opinion.