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An audit attempts to make sure that the books and accounts of an individual or organization are properly maintained as required by law. Auditors consider the propositions before them, find evidence whether showing positives or negatives, and evaluate the propositions in their final report.

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For those unfamiliar, Exigence is the need or drive behind something. It's the why behind actions and decisions.

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that which is required in a particular situation -usually used in plural; the quality or state of being exigent; a state of affairs that makes urgent demands... See the full definition

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An audit is done by an outside party. By definition an audit is an inspection of an individuals or organizations accounts.

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Audit - Definition, What is Audit, and How Audit works?

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ClearTax offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. ClearTax serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India. Efiling Income Tax Returns(ITR) is made easy with ClearTax platform. Just upload your form 16, claim your deductions and get your acknowledgment number online.

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There are definitely wrong, and right ways to do an audit. The steps followed and the purpose of an audit though should remain universal.

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Audit Report Examples provides the example of the different audit report on the condition of the financial situation and internal accounting of the different companies which is given by the auditor after reviewing the different documents and financial statements.

Audit Report Examples

contains the opinion of independent auditors about the company's financial statements such as Income Statement, Balance Sheet, Cashflows, and Shareholders' equity statement. Auditor reports can be found in companies' annual reports just before the financial page.

There can be following variations in an auditor report opinion examples:

#1 - Clean Opinion: If the auditor is satisfied with the financials and as per him/her, these are of fair presentation.

#2 - Qualified Opinion: In this type of report, the auditor will state limitations faced while auditing.

#3 - Adverse Opinion: If the statements are not correctly stated.

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For eg:
Source: Audit Report Examples (wallstreetmojo.com)

If you want to learn more about Auditing, you may consider taking courses offered by Coursera -

1. Auditing I: Conceptual Foundations of Auditing

2. Auditing II: The Practice of Auditing

Audit Report Example of Facebook

It has provided its audit report in 5 points which have been mentioned below:

#1 - Opinion on the Financial Statements

In the first paragraph, the auditor has indicated they have an audited balance sheet, , Shareholder's Equity, and Cashflow Statement of the company for the last 3 years. Also, they have checked all the related notes, which explain the basis for the numbers and some accounting guidelines. Based on the audit, EY is confirming that financials are in accordance with standards. Based on the report, they have provided an unqualified clean opinion; it means the auditor is satisfied with the financials provided.

#2 - A Basis for Opinion on Financial Statements:

#3 - Opinion on Internal Control Over Financial Reporting

#4 - The Casis for Opinion:

Here auditor mentioned their process for forming the opinion. They have mentioned that formally audit has been done to confirm whether the control mentioned by management over the financial are reasonable.

#5 - Definition and Limitation of Internal Control Over Financial Reporting:

Audit Report Example of Tesco Plc

Below are some main parts of the sample audit report.

Opinion: As per Deloitte, their financial statements and basis for statements are as per IFRS (International Financial Reporting Standards). For their auditing, they have selected Group Income Statement, Group , Group and Parent Company Balance Sheet, Statement of Change in equity, , and related notes.

The basis for Opinion: In this part, auditors mentioned that conducted audit is in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable laws.

Summary of audit approach: In this part, at first auditor specified the critical matters for audit which are-

Conclusions relating to going concerned: In this part, Auditors have reviewed the statements that have provided by the Directors of the company as we know that an organization is meant to be a going concern. So, auditors are checking here whether the directors have used the accounting standard, keeping in mind that the company is a going concern. Also, auditors have checked the uncertainties and the company's ability to continue for at least the next 12 months forward. As per Deloitte, they have nothing to add or draw attention related to that.

Principal Risk and Viability Statement: In this portion, Deloitte mentioned their views on what kind of risks and statements are mentioned by directors and how they are being mitigated. Auditors have checked the statements of Directors that how the prospects of groups are assessed by them and for that what and how they have taken the time frame. Auditors also want to examine whether the Directors have an explanation of how the will be met by the firm in the future. Auditors want the Directors to disclose any such liabilities, which can have an issue in the future. Based on that, they prepare a report. Deloitte confirms that they have nothing material to report.

Conclusion

Above, we have taken an audit report sample example of one US company that is compliant as per GAAP and one UK company, which is as per IFRS compliant. Though the principal of both the reports is the same, the report for UK company is showing elaborative information and providing an explanation of all the critical audit matters, which should be quite helpful in making an independent view of the firm by an analyst.

Recommended Articles

This has been a guide to Audit Report Examples. Here we discuss Types of Audit report opinion and Sample Audit Report examples, including Facebook, Tesco Plc. You can learn more about financing from the following articles -

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Audit Report Examples provides the example of the different audit report on the condition of the financial situation and internal accounting of the different companies which is given by the auditor after reviewing the different documents and financial statements. contains the opinion of independent auditors about the company's financial statements such as Income Statement, Balance Sheet, Cashflows, and Shareholders' equity statement.

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An example of a possible audit format. Not all audits look the same, but the purpose never changes.

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This paper is about a specific genre in the accounting world, an audit. If you don’t know what an audit is don’t worry there’s a more detailed definition in the next section of this paper. An audit is an extremely important document, it is turned in to the recipient/client at the predetermined due date with the findings of the auditor. One thing to be noted is that the person who does the audit is not the accountant of the client. The auditor is an outside unbiased investigator.

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The audience is not large. Depending on who the audit is done on it varies the amount of people who will be notified and involved. If it is an organization then strictly those with a need to know will be receiving copies. Aside from the client the auditor and IRS will also be privy to the findings of the auditor

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An audit is a rather serious report and the need behind it is also rather serious. The need behind an audit is to make sure your accounts and books are balanced and completed as expected by the law. The IRS can send you to an auditor if there is reason to doubt the completion of your taxes. The auditor is given the clients books, reports, financial statements, and then investigates to see if there is anything missing or not adding up. Once the investigation is complete the auditor submits their final report whatever it may be. So, the exigence for an audit would be doubts that things were completed lawfully by an individual or organization.

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An example of those who receive the final audit report for Harvard

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In general, an audit report is issued to those in a position to see that corrective actions are taken and those with a need to know. Generally, this includes the department/function management team, Finance Dean, RMAS Director, Vice President of Finance and the PricewaterhouseCoopers Partner on the Harvard account. The report may also be distributed to those individuals who have significant responsibility for the audit area e.g. Office of Sponsored Research for award management audits.

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In general, an audit report is issued to those in a position to see that corrective actions are taken and those with a need to know. Generally, this includes the department/function management team, Finance Dean, RMAS Director, Vice President of Finance and the PricewaterhouseCoopers Partner on the Harvard account.

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Accounting is a large community and within it there are many different genres to go with each specific task or job you have within accounting. The genre I am most interested in focusing on is an audit report. To me, this seems fascinating because an auditor is like the detective of the accounting world and the report is the evidence and thoughts found after investigating.

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A little more in-depth discussion about an audit and the process behind it. How a person or business is selected is either by random selection or computer screening, or related examinations. If there is an error or a 'blip' in the tax information you provided the IRS will send you a notice in the mail that an audit must be performed. From there you can have your audit performed in various ways. It can be done by mail, or if there's too many books and records than an in-person interview can be conducted either at an IRS office (Office audit) or at the taxpayer's home or office, or at an accountant's office (field audit).

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The constraints are rather interesting. The law must be followed in this process, but the auditor can only investigate what the client turns over to be reviewed. If the client leaves out important documents, then the conclusion the auditor comes to from the unfinished knowledge of their investigation may be wrong. Thus, the constraints are the law and the willingness of the client to follow the law.

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To go over everything, A audit is a report on the financial status of a person or business. It is done by an outside party either at an IRS office or an accountants office. Once the report is done the auditor turns it in to the client and the IRS. The need behind an audit is an error in the tax or financial statements of the client who is notified by mail that an audit needs to be done. The constraints are the law and clients willingness to be forthcoming with their financial information. I hope this paper was able to enlighten the interesting process and purpose of an Audit report.

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Here is an example of how you might appeal an audit.

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NSA 200 AUDIT CAP II OVERALOBJECTIVE OF THE INDEPENDENT AUDITOR & T...