1. WELCOME TO OUR PRESENTATION

2. Group members: Group Name: Sacrifice No. Name Id Program 01.
Md. Burhanur Rahman
BBA
02.
Raihanul Islam
03.
Shaon Ahmed
04.
Roksana Islam
05.
Khadiza Akter
06.
Samima Sultana

3. Topic: Audit Report Contents: Basic elements of an audit report
Specimen of a clean auditor’s report
Kinds of audit report
Modified opinion for emphasis and not affecting auditor’s opinion
Modified opinion-disclaimer, qualified and adverse opinion

4. Introduction:
Communication of audit conclusions after having carried out the audit process
Summarized expression of certain facts and opinions regarding the conduct of audit
To know the proper use of GAAP and GCC
Section 227 of the companies act specifies the including of a company audit report 1

5. Basic elements of an audit report:
Title:
Nature of report
distinguishes from other report
Addressee:
Addressing a person for forward
The engagement or the relevant statute determined the required person
Submitted the person who appoints the auditor 2

6. Cont… Introductory paragraph:
Financial statement are identified by the title, period covered and the entity
Clear marking of the responsibility
Involvement of financial statement for significant accounting estimate, determination and methods 3

7. Cont… Scope paragraph:
Examining on a test basis, evidence to support the account
Assessing accounting principles for preparation of financial statements
Assessing the significant estimates made by the management
Evaluating the overall financial statement preparation 4

8. Cont…
Opinion research:
Date of the report: 5

9. Cont…
Place of report:
Auditor’s signature: 6

10. Specimen of a clean auditor’s report:
Auditing the attached Balance Sheet of ABC as at 31st March 2005 and the Profit and Loss Account of the same time
Responsibility is to express an opinion based on the audit
Conducting the audit according to the auditing standard accepted in India
Requires planning and performances to obtain reasonable assurance whether from material misstatements 7

11. Cont…
Includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements
Also includes the assessment of accounting principles used and significant estimates evaluating the overall financial statements presentation
According to the explanation given, true and a fair view are found 8

12. Kinds of audit report: Clean or unqualified report:
The financial statement are prepared using Generally Accepted Accounting Principles (GAAP)
Comply with the relevant statutory requirements
Adequate disclosure of all material related to the proper presentation of the financial operation
Changes the accounting method in accordance with what is permissible 9

13. Cont… Modified report:
Matter that do not affect the auditor’s opinion:
- Emphasis on matter
Matter that do affect the auditor’s opinion:
- Qualified opinion
- Disclaimer of opinion
-Adverse opinion 10

14. Modified opinion for emphasis not affecting the auditor’s opinion:
May find it useful to incorporate reference to certain matters disclosed in financial statement
Such reference is indicated before opinion paragraph
Purpose of highlighting the important of such facts the conjoining reading beneficial for the understanding the report 11

15. Cont…
Not taken as any reservation on the part of auditor relation to the opinion expressed beneath
Going concern concept implies current assets held for realization
The accounting of transactions and balances would require consequence changes when the going concern concept is impaired 12

16. Modified opinion-disclaimer, qualified and adverse opinion:
Limitation on the scope of the auditor’s work
Disagreement with management regarding the :
- Acceptability of the accounting policies
selected
- Method of the application
- The adequacy of financial statement disclosures 13

17. Cont… A qualified opinion: Expressed when the auditors conclude
Clearly indicates the reasons for the qualification
An adverse opinion:
Expressed when the effect of disagreement is so material
Qualification of the report is not adequate to disclose the misleading of financial statements 14

18. Conclusion: To uphold the overall auditing strategy of a company
Taking decision for the financial statement based on the prepared report
Reducing the misleading or the misstatement of the audit plan 15

19. Probable questions: Broad Questions: Short Questions:
Narrate the basic elements of an audit report in a nutshell.
What is scope paragraph? What does the scope paragraph describe?
Short Questions:
What is an audit report?
Who is an addressee?
What is a clean report?

20. THANK YOU ALL ???