Audit Report

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Chapter 6 : Audit Report 
1. There are four basic types of audit reports or opinions , namely : Unqualified , Qualified , Adverse ,  and Disclaimer . An unqualified audit report may be ‘clean’ or may contain explanatory language.
2. Companies Act 1965 requires companies to prepare financial statements and that they should be audited whereby the auditor must express an opinion wheather the financial statements are accurate.
3. The basic structure of an audit report comprise , report title , Audit report address . Introductory paragraph , scope paragraph ,Auditor’s details such as address name and signature. Opinion paragraph and tge date of audit report. 
4. Unqualified audit report with ecplainatory language is issued if the overall financial statements give a true and dair view but there is inconsistency in regard to one of the following:
inconsistent application of GAAP , substantial doubt about going concern
Auditor agree with departure from GAAP , emphasis of the matter involvement of another auditor in the report which requires the auditor to include an explanatory paragraph

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