An Overview of Accounting Audit Report
An accounting audit report offers the general financial outlook of an organization. Therefore it is generally prepared towards the end of a financial year. The document is useful to the people who need an accurate picture of the functioning of an organization. The report aims to provide an insight of the organization’s functioning, viability and profitability in the form of a commercial enterprise. Those who study the report are able to get the actual picture through the information held by it. Moreover, the information is verified to be materially accurate and true. In these reports, the financial year is described as the reporting period. The period is relevant to the beginning of an accounting year which refers to the day that follows the end of previous financial year. If the company is new, it is the day of its foundation.
The process of filing the audit reports is applicable to all the public organizations, although they could be filing for an exemption on the basis of report’s content. Every organization, whether it is private or public is expected to maintain accounts of its existence as well as performance. The accounts that need to be prepared include balance sheets, auditor’s report, profit and loss accounts, and group accounts (if there is a group of companies) as well as the director’s report signed by a secretary or a director of the organization.
The auditor is a firm or a person who has been appointed for scrutiny and preparation of the overall financial position of an organization through its performance for the complete financial year. Both private and public companies conduct the audits and prepare the reports. Generally, the accounting audit report is concerned with the financial and operating aspects of an organization.
The auditor is usually responsible for review of the interim financial statements. He/she also discusses these financial statements with the management and external auditors of the organization. Moreover, the auditor is also responsible for reviewing and monitoring the integrity of an organization’s internal control system. Besides this, the auditor also discusses the policies and guidelines associated with risk assessment, internal control and risk management.