A financial statement audit report is the examination of financial statements and accompanying disclosures of a company by an independent auditor. A financial audit report is the result of that examination. The auditor’s report should have the financial statements when the report is issued to the recipient. The purpose of the financial audit report is to provide an assurance from the third party to various stakeholders that the matter audited is free from any material misstatement. A financial audit report adds credibility to the position and performance of business. Auditors in Dubai, help people for Internal and External Auditing purposes.
Annual reports which are audited should be filed by all the entities that are publicly held in the Securities and Exchange Commission. Similarly, lenders should be given an audit of the financial statements of the company to which they are lending funds. Due to the increased complexity of the two primary accounting frameworks, Generally Accepted Accounting Principles, and International Financial Reporting Standards, audits have become very common.
A company’s financial audit report generally consists of an audited financial statements and a narrative that contains a description of the company’s performance and activities. Though the narrative part of a financial audit report is not audited, the auditors read the narrative part to identify any material misstatements with the audited information. If they identify any misstatements, they communicate them to the company. The narrative also has an audit opinion. The audit opinion is the opinion expressed by the auditor after examining and evaluating all the financial statements. The opinion indicates whether the financial statements, on the whole, are free from any material misstatements due to any error or fraud. The opinion indicates whether the financial statements are fairly presented according to the standards or not.
It is the responsibility of the auditor to plan and conduct the audit in a way that it meets the standards of International Financial Reporting. The audit opinion is stated in a separate paragraph in the audit report. If the financial statements as a whole are free from any material misstatements, the auditor issues a clean opinion. A modified audit opinion is an opinion that is not clean. If the auditors disagree with the financial statements, issue a modified audit opinion. Auditors in UAE, like BLS Accounting, can also modify the audit report without modifying the audit opinion and add extra paragraphs that give a narrative about significant matters that draw user’s attention. These paragraphs are known as Emphasis of Matter paragraph.