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An
audit report is a written opinion of an auditor regarding an entity's financial
statements. The report is written in a standard format, as mandated by Malaysia
Audit Act 1957. When a Company preparing
financial statement, it must often contain an auditor's report from an external
accountant or auditor. This document evaluates the financial statement's
validity and reliability.
An
auditor's report is ultimately intended to provide reasonable assurance that
there are no material errors within an organization's financial statements.
Auditor's report is useful when the companies are going to loan fund from third
parties such as government, bank or new investor.
In
addition, relevant authorities required every local company to complete their
audited account and lodge in with annual return each calendar year. Submission
of tax also replies upon on audited account.
Preparation of the auditor's report
After
auditing an organization's financial statements, the auditor will prepare their
own report where they share their opinion about the validity and reliability of
the financial statements.
The
auditor is expected to provide a true picture of the organization and their
financial statements. In the report, they must also state their connection to
the financial statements, as well as whether they work for the company
externally or internally.
The
auditor can also express any reservations or additional information that they
may have in the auditor's report. For example: if the auditor disagrees with
the organization about the valuation of an asset, and they believe that this
has a substantial impact on the financial statements, they should state this in
their report.
The following report variations may be used
by a licensed auditor:
A
clean opinion, if the financial statements are a fair representation of an
entity's financial position.
A
qualified opinion, if there were any scope limitations that were imposed upon
the auditor's work.
An
adverse opinion, if the financial statements were materially misstated.
A
disclaimer of opinion, which can be triggered by several situations. For
example, the auditor may not be independent, or there is a going concern issue
with the auditee.
Contact us
If you have further queries, please contact Tannet
24 hours Malaysia hotline：603-21418908;
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24 hours Hong Kong hotline：86-755- 36990589;
Email: mytannet@gmail.com
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