Audit reports are valuable documents that represent a company’s annual accounts. In addition, it provides quality information on the state of the company and allows us to know if it is necessary to make decisions to ensure the viability and continuity of the audited company. Keep reading our article and learn more about an audit report!

What is an audit report?

It is a document made by the external auditor and that must share the information and veracity about the annual accounts or financial statements of the company, and thus determine the “state of health of the company”.

Types of resolution of an audit report

Although the auditor’s report is an opinion of the external auditor on the situation of the company, there are several types of opinion, this is based on the financial statements:

• Clean opinion: The audited annual accounts reflect the true image of the company in accordance with the regulatory framework of reference.
• Opinion with caveats. The auditor has found certain deviations in the annual accounts with respect to the regulatory framework of reference.
• Adverse or negative opinion. It is noted that there are significant deviations in the preparation of the financial statements in relation to the regulatory framework.
• Abstention or denied opinion. It is when there is a limitation on the scope of the auditor’s work and this has not allowed him to obtain sufficient evidence to make a judgment on whether the annual accounts reflect the true image of the company.

Factors to Consider About Audit Reports

• The auditor may be a natural or legal person
• The auditor must be external
• The audit report expresses the auditor’s non-binding opinion
• The financial statements that are audited are the balance sheet, income statements, statement of cash flows, and statement of changes in equity

At VLH we have the best auditors who can help you in different types of audits that we offer you so that you can request the one that best suits your needs. Request your advice today!