Contents or Elements of Auditor's Report - QS Study
QS Study

Contents or Elements of Auditor’s Report

The report of a certified auditor or auditors stating the accuracy of financial statements of a public limited company is known as auditor’s report. The auditor’s report should incorporate the following elements:

Title: The auditor’s report should contain a heading as styled “Auditor’s Report.”

Addressee: Every auditor’s report must address the recipients or readers of the report.

Identification of the financial statements audited: In the report, the auditors should specify name of financial statements audited by them during the financial year. They generally audit profit and loss statement, balance sheet, cash flow statement and ounces equity statement. All other supportive books of accounts are also within the purview of their audit.

A reference to the auditing standards and practices followed: The auditors follow certain generally accepted accounting standards. Here they specify the standards followed by them in auditing.

Expression of opinion on the financial statements: They must give a declaration stating whether the statements and books of accounts represent a true and fair view of company affairs.

Signature: At the end of the report, they need to put their signature.

Auditor’s address: Full name and address of the audit firm is to be mentioned in the report.

The date of the report: Every report must mention the date on which it was prepared and submitted.