Checking the financial status of the company by an independent expert, called auditing, is a highly organized process that requires high professionalism and strict implementation of the many requirements.The result of the audit is a document, which contains the views of the audited company's auditor on how properly keep records of the company, which it identified errors due to negligence of employees or because of fraud, and how much data mismatch can harm the company by influencing the correct decisionthe company's management further decisions based on false information reporting.This document - the auditor's report.
What is this document?The auditor's report - a special sample letter in which he tells the verifier how to carry out inspections and what the results were revealed in the course of its implementation.The auditor should always be mentioned in the letter, which the sources of audit evidence were used to them - the importance of this item is explained by the fact that the auditor should confirm the arguments that the information analyzed them reliable.In addition, the auditor must submit a complete plan and the audit program.In other words, the organization of the preparation of the audit should be painted in the letter in full.In this case, the inspection immediately cuts off too many questions about what it was originally done anything wrong.
The auditor's report is of different types, depending on what results come auditor during the audit.If the entire accounting system in the enterprise is working properly and found no errors and inaccuracies, the type of conclusion is positive.This means that the auditor fully endorses the financial condition of the accounting firm and does not see any points that require correction or correction.
Audit report conditionally positive type - a letter in which the inspection as a whole approves the accounting system in the enterprise, however, indicates that the accounting system gives some crashes that result in errors, which, however, did not exceed the threshold of materiality, theIt has not lead to serious distortions of the statements on the basis of which decisions are made.
Auditor's report could also be negative - in the event that the auditor found serious distortions in the financial documents of the company, which accordingly affect the reporting, and as a consequence - the decisions taken by management of the company on the basis of distorted financial data.In this case, the auditor must describe in detail all of the identified errors and inaccuracies, to express their opinion on the causes of their occurrence and possible remedies.The auditor does not have the detection of any error, even if the administrative or criminal offenses, report them to the appropriate authorities - its purpose is merely to convey information about the existence of any problems before the company's management.
It should be noted that the auditor's responsibility to the conclusion that he has provided leadership to the company at the end of testing.This means that if the auditor provided the wrong type O or invalid information, which were used by management of the company and brought a loss, the company has the right to submit a claim to the audit firm, demanding compensation for damage caused through the fault of the auditor's review.The approach to the compilation of such an important document as the audit report is taken seriously, with the full understanding that the document can be fatal for both the client company and for the auditor's review.
