QS Study

Clean Audit Report

A “clean” audit report, indicating the auditor’s opinion that a client’s financial statements are fairly presented in accordance with agreed upon criteria (e.g. GAAP). This is the desired opinion of each company. After preparation of books of accounts, the auditor examines and verifies those to know whether the statements represent a true and fair view of company affairs. A standard report is the most common report issued. It contains an unqualified opinion stating that the financial statements present fairly in all material respects, the financial position, results of operations and cash flows of the entity in conformity with generally accepted accounting principles.

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. An auditor’s report provides an opinion on the validity and reliability of a company’s financial statements. It an essential part of a company’s annual report. A clean Audit report is an unmodified report which states financial statements of the entity are all free from material misstatements and error. Furthermore, a qualified opinion states financial statement is materially misstated and are not presented in accordance with IAS’s