Assessing the financial status of any company or a business setup is referred to as an audit report. when we make a judgment about the financial state of the company, we call it audit report.
What does an audit report have in it?
You can hire the best auditor form the top audit firms in Dubai Farahat & co. The document of an audit report basically has the following things in it;
Assets of the company
Liabilities of the company
Present and future o the company
Getting an audit report of a company is really necessary because it tells you about the present condition of the company. by the audit report, you can also come to know about the future company is holding. This also helps the people in improving the condition of their business and also gives them an opportunity to get bettered.
There are 4 basic types of an audit report. every one of it is different from the other. By getting the information about the audit report types, you will get to know which one you should make for your company and what should be included in your company’s audit report.
When the audit report Is free of any sort of misrepresentation, the report will give you a clean and unqualified opinion. This will also show you the clean image of the company.
If you maintain all the records of your small business in an accurate manner according to GAAP), you will be able to come up with an unqualified opinion in a really easy manner. The unqualified opinion business report is also known to be the best type of report
Here are the things that are included in an unqualified audit report;
Title (independent word will be present in the title to show that the report has been made by a third party)
The main body (3 paragraphs highlighting the purpose, responsibilities as well as the findings of the author)
Signature, date and the address of the author
When the company doesn’t maintain its records in a standardized form (GAAP) it will be referred to as a qualified report as it is not having any sort of misrepresentations in it.
The way you write a qualified report is quite similar to that of an unqualified report with an additional reason of why the report is not unqualified. All other things are same in both the reports.
It is considered to be the worst type of a report because it is an adverse opinion. The indication in this report shows that the report is not according to GAAP and the records are misrepresented as well. it is to be noted here that the adverse report shows that there is some kind of fraud in the report and companies are asked to correct their financial statements in such kind of reports.
Disclaimer of Opinion
Due to some reasons, the author of audit report might not be able to present the accurate report. this might occur because he lacked the documents that were required to formulate the report. A disclaimer of opinion is actually issued in such a condition and the authors of the audit report from the audit firms in UAE will tell that due to so and so reasons, he was unable to determine the financial status off the company.