An auditor’s report is an important document issued by an external independent auditor to attest and report on an organization’s financial statements It is an assurance by an independent qualified professional (typically a licensed Certified Public Accountant (CPA)) that the financial statements provide a “true and fair” presentation of the organization’s financial position, results of operations, and cash flows, in accordance with the applicable financial reporting framework. Its purpose is to give stakeholders a clear picture of the financial health of the organization, and to provide assurance that the financial statements have been audited in accordance with international auditing standards.
The auditor’s report provides assurance of the accuracy of the financial statements and is an integral part of financial reporting. It includes the auditor’s opinion on the financial statements and any material misstatements found during the audit. It also includes the scope of the audit and a description of the procedures performed as part of the audit.
An auditor’s report is typically issued annually, though its contents can vary from year to year. The auditor’s report is considered a key component of an organization’s financial reporting, and is a critical factor in the decision-making process of stakeholders and potential investors.
The five best examples of auditors’ reports include:
1. An opinion letter or “clean opinion”: This type of opinion letter is issued when the auditor concludes that the financial statements are free from material misstatement, are in conformity with the applicable financial reporting framework, and reflect the true and fair view of the organization.
2. An adverse opinion letter: This type of opinion is given when the auditor concludes that the financial statements are materially misstated, are not in conformity with the applicable financial reporting framework, or do not reflect a true and fair view of the organization’s financial position and performance.
3. An “emphasis of matter” paragraph: This type of opinion is provided when the auditor has identified a matter that is of special significance to the financial statements but is not considered to be a material misstatement.
4. A “disclaimer of opinion” letter: This type of opinion is issued when the auditor is not able to form an opinion on the financial statements because of limited scope or lack of adequate evidence.
5. An emphasis of matter without an opinion: This type of opinion is given when the auditors cannot form an opinion, but identifies a matter that is of special significance to the financial statements.