How to Prepare for an Audit Report

Posted by D&V Accounting Services

Sep 14, 2015 7:42:00 AM

Everything_you_Need_to_Know_about_the_Audit_Report

Every once in a while, you will be required to present your most recent financial statements to the tax office or to your potential investors.

In these instances, you cannot just generate a financial statement without an accompanying auditor’s report. This report is vital because it validates the accuracy and authenticity of your financial statements.

 

 

The auditor's report

The auditor’s report serves as a tangible and reliable proof that the claims indicated in your financial statements are accurate. It also provides the assurance that there are no errors and miscalculations in your financial statements.


Preparing the report

The auditor will need to get a copy of your financial statements. As soon as he finished assessing your financial statements, he will then move forward with the creation of his own report based on the document you have presented. In this report, the auditor will note his impressions about your financial statements. Specifically, they will cite assert or deny the validity of your documents.


Since the auditor is expected to paint a clear picture of the business financial position of your business, it is his responsibility to mention any reservations that he may have upon assessing your company’s business finances.


Specifically, the auditor’s report should contain these items:

  • Company name and the accounting method used for the assessment

  • A rundown of the auditor’s duties and responsibilities

  • The auditor’s reservations (if applicable)

  • The auditor’s conclusion

  • A copy of the management’s internal financial report and other related documents that are needed for an efficient assessment

  • The date of the audit and the auditor’s signature


Various accounting methods and standards could possibly complicate or affect that results of financial audit processes. To avoid confusion, most auditors conform to the universal guide set in the Generally Accepted Accounting Standards (GAAP).


Financial audits require a lot of hard work - sorting, computation, documentation and many others. If you are preparing your business for an upcoming audit, it would be best to seek the help of a professional.

Find out what other finance and accounting services can help revolutionise your business finances by getting in touch with our qualified advisers at D&V Philippines!

 

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Topics: Audit and Compliance, Financial Management and Analysis

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