At the end of the every audit, the auditor issues his report, which contains factual information as well as his opinion on financial statements and other areas. These reports form the medium of communication of the auditor’s views to the members to the company. In order to express such an opinion, the auditor should review and asses the conclusions drawn from the audit evidence obtained by him. On the basis of his assessment, the auditor may issue an unqualified, qualified, adverse or disclaimer of opinion.
Whenever the auditor issues a qualified, adverse or disclaimer of opinion, he should state in clear and informative manner all reasons therefore. The auditor issues a clear report in case he does not have any reservation in respect of matters contained in the financial statements. In such a case, the audit report may state that the financial statements give a true and fair view of the state of affairs and profit and loss account during the period. There are some types of opinion given below:
1. Unqualified Opinion
2. A Qualified Opinion
3. An Adverse Opinion
4. A Disclaimer of Opinion
Only a person appointed as a auditor of the company can sign the Auditor’s Report or sign or authenticate any other document of the company that is required to be signed by the auditor as required under the Act. Where a firm is appointed as the auditor of the company under Section 226 of the Companies Act, 1956, only a partner of that firm can sign such a report. The branch auditor should sign the report of the audit of the branch of the company in the same manner.
Some other areas of study are given below:
1. Types of Audit Report
2. Signature on audit report
3. Audit reports under Companies Act, 1956
4. Qualification in the Auditor’s Report
5. Auditor’s separate report to directors
6. Audit certificates and Audit Report
7. Audit reports and certificates for special purposes
8. Audit of company prospectus
9. Audit reports / certificates on financial information in offer documents