Auditing Procedures And Reports Used By Auditors Essay

976 WordsMay 18, 20154 Pages
The audit process is a vital role to the successfulness of a company or its downfall. By having a company’s financial records frequently evaluated; hidden issues that could take years to surface could be found in a timely manner. The intention of this paper is to show a brief summary of auditing procedures and reports used. There is also a comparison and contrast of audit procedures and reporting that is used by auditors. This paper also compares the Explanatory Report to the Standard Report. An audit can be very complex in its process of checks that ensure information is correct as recognized. Auditing looks like a numbers-based analysis and it is imperative to be able to audit the procedures of the past to recommend future improvements for success. Audit Reports There are a number of auditor reports that exist. These include unqualified, explanatory, qualified, disclaimer, and adverse. The unqualified report means that in an auditor’s opinion, there are no special circumstances found that need to be reported and the company’s financial statements are presented and do not show any material misstatements. An auditor might issue reports that show their opinions are not unqualified. The other reports include explanatory, qualified, disclaimer, and adverse. The explanatory paragraph that is usually added to an unqualified report follows what is known as the opinion paragraph. “Four situations require the addition of the explanatory paragraph: 1) Reference to the audit of

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