Auditor’s Responsibility When Issuing a Report

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Auditor’s Responsibility when Issuing a Report

Abstract

The objective of an Independent auditor is to render an opinion about whether the financial statements of a company, legal entity or an organization have been fairly presented in all material respects and in accordance to the generally accepted auditing standards. In expressing an auditor’s opinion, they will typically issue one of four types of reports, an unqualified report, qualified report, an adverse opinion, or a disclaimer of opinion. In contrast, a qualified report indicates that the auditor has concerns about matters affecting the financial statements (this could include the client’s accounting policies or the method of their application or the adequacy of financial statement disclosure) or the limited scope of the auditor’s work. An adverse report is issued when an auditor “has concluded that the audited financial statement do not fairly represent the organization's financial position or financial performance, and that there are significant departures from GAAP” (Schmidt, 2013). A disclaimer of opinion also called disclaimer of report is issued when the auditor has not been able to obtain the sufficient audit evidence on which to base their opinion. Any of the reports issued by an auditor can bring legal consequences against the auditor and/or the firm they are employed with.

Auditor’s Responsibility when Issuing a Report
The objective of an Independent auditor is to render an opinion about whether the financial statements of a company, legal entity or an organization have been fairly presented in all material respects and in accordance to the generally accepted auditing standards. “These standards require him to state whether, in his opinion, the financial statements are presented in conformity with generally accepted accounting principles and to identify those circumstances in which such…...

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