- audit report
- A document that summarizes the findings of an audit. An external audit report sets out an *audit opinion. Most systems of *Generally Accepted Auditing Standards have standardized formats for external audit reports and require explanations of any *unqualified opinion (such as an *adverse opinion, a *disclaimer, or a *qualified opinion). The content and style of internal audit reports are largely at the discretion of individual *internal audit functions. All audit reports, however, should follow basic criteria of "clarity, precision, unambiguity, and comprehensiveness in disposal of the audit’s terms of reference" (Flint, 1988, 121).
Public skepticism over the usefulness of the *boilerplate language used in external audit reports has a long history. It is reflected, for example, in this humorous and poetic audit report spoof of the 1950s (quoted in Chambers, R. J., 1995, 91):
We have audited the balance sheet and here is our report: The cash is overstated, the cashier being short; The customers’ receivables are very much past due, If there are any good ones, they are very, very, few; The inventories are out of date and practically junk, And the method of their pricing is very largely bunk; According to our figure the enterprise is wrecked... But subject to these comments, the balance sheet’s correct.Further reading: Walker (1997)
Auditor's dictionary. 2014.