A document containing information organized in a narrative, graphic, or tabular form, prepared

on ad hoc, periodic, recurring, regular, or as required basis. Reports may refer to specific periods,
events, occurrences, or subjects, and may be communicated or presented in oral or written form.
According to Joseph Lancaster, “a report is a medium of expressing an opinion to persons
concerned in order to give a clear and summarised information based on collected facts and
figures”.

In short, a report is a statement of opinion regarding an event or series of events.

auditor's report definition

A written opinion of an independent certified public accountant that a company's financial
statements are a fair representation of the company's financial performance and financial
position. The auditor's report is required for each corporation whose stock is publicly-traded.

The auditor's report is a disclaimer thereof, issued by either an internal auditor or an independent
external auditor as a result of an internal or external audit, as an assurance service in order for the user
to make decisions based on the results of the audit

11.4 ESSENTIALS OF GOOD AUDIT REPORT

The essentials of good audit report are as follows:

1. Simplicity

Simplicity should be one of the important characteristics of good audit report. It should be as
clear as understandable. It implies that ambiguous terms and facts should not be included in the
audit report.

2. Clarity

The term ‘clarity’ implies cleanness in audit report. This indicates that the audit report should not
conceal material information which are required in evaluating and appraising the performance of
the business.

3. Brevity

The term ‘brevity’ signifies the conciseness in audit report. Repetition of facts and figures should
be avoided in order to control the length of the report.

4. Firmness
The report should clearly indicate the scope of work to be done and should cleary indicate
whether the books of account exhibit ‘true and fair’ view of the state of affairs of the business.

5. Objectivity

The report should be based on objective evidence. Opinion formed on the basis of information
and evidences which are not measured in terms of money should not be incorporated in the audit
report.

6. Consistency

Consistency in presenting accounting information is the basis of good audit report. A good audit
report should take into consideration whether consistency, as to the method of stock valuation
and depreciation charges, has been adhered to.

7. Accepted principles

The audit report should be based upon the facts and figures that are kept in accordance with
generally accepted accounting and auditing principles.

8. Disclosure principles

The audit report should be unbiased. It should disclose all the facts, all the truth.

9. Relevance

The report should disclose all relevant information, which are supposed to be known by the
users, but are not included in the financial statements disclosures.

10. Reference to AAS

It should preferably state the auditing standards and practices adopted by the auditor while
conducting audit. Such a reference in the report will assure the users that the audit has been
carried out in accordance with Auditing and Assurance Standards.