This report is a document emitted by an accounting auditor in which the professional opinion is expressed about the true and fair view or image of a business’ accounts and financial statements. These include observations, conclusions and constructive recommendations. This document is used by interested parties, third parties and, sometimes, the government.
The auditor’s report on the annual financial and accounting statements is a document in which the extent of an auditor’s findings is described. The resulting information, studies, research and analysis that are carried out by auditors during an audit expressed in writing describes the professional opinion about the area or activity that was audited in relation to the established objectives. These reports show the weaknesses of a company’s internal control mechanisms, if any, and formulate the pertinent recommendations to eliminate the causes of such deficiencies while establishing the adequate corrective measures.
An auditor’s report on annual financial and accounting statements should include:
- A title or identification of the person or persons to whom the report is addressed.
- An introductory paragraph identifying the financial statements included.
- A paragraph describing the respective responsibilities of the directors (or their equivalent) and auditors.
- A paragraph with information on how the audit was conducted and the basis for the auditor’s opinion.
- A final paragraph the states the auditor’s opinion on the financial statements.
- A signed or printed signature of the auditor(s).
- The date of the auditor’s report.