Question

7What are the parts of the Unqualified Audit Report ?

Answer 1

There are 7 basic parts of an Unqualified Audit report. These are as follows:
1- Report Title - It is important that title of the report must include the term 'INDEPENDENT' such as 'INDEPENDENT AUDITOR'S REPORT'
2- Audit Report Addressee - This shows the personnel who are meant to receive the audit report. It includes- 'COMPANY, STOCKHOLDERS AND BOARD OF DIRECTORS'
3- Introductory's paragraph - It should basically contains 3 things-
(a) That the Audit firm has conducted the audited,
(b) The list of financial statements that have been audited,
(c) Preparation of financial statements is responsibility of Management and Auditor's responsibility is to state on opinion
4- Scope paragraph - This shows the scope for which the audit was conducted and what standards were followed. Whether the financial statements are free from material misstatements and if not then then what discrepancies were observed during audit procedures with evidences obtained.
5- Opinion paragraph - This shows the conclusion reached by auditor based on evidences obtained and also specifies that Auditor's opinion is a professional judgement and not a guarantee
6- Name and Address of the CPA/FIRM - It shows the NAME of CPA/FIRM and ADDRESS of the CA/FIRM who has conducted the Audit of the company
7- Audit Report date -  It shows the DATE when the audit was completed.