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*AAKASHAYA PATRA SEVEN STAR SMART EDUCATION SERIES PART – 46 :* 24.05.2020
Auditors Report
An Important Part of Company's Annual Report!

The auditor is deemed to be a third party, whose job is to study the accounting process of the company and offer an impartial opinion about the authenticity of the books maintained by the company and accounting procedures adopted by the company.Thus audit report is basically the opinion of an auditor regarding the company's financial statements. The report is normally written in a standard format. The typical audit report contains these important topics –

* The responsibilities of the auditor and the management of the entity.
* The scope of the audit.
* The auditor's opinion of the entity's financial statements.
* Report on other legal and regulatory requirement.

Here only opinion of the auditor is important which can be-

1. A Clean Opinion - If auditor feels the financial statements are a fair representation of an entity's financial position.
2. A Qualified Opinion - If there were any scope limitations that were imposed upon the auditor's work.
3. A Disclaimer Opinion - If the auditor is not able to express a definite opinion which can be because of several causes like - lack of properly maintained financial records or the absence or insufficient support from the management, auditor may not have had the opportunity to fulfill tasks that they deem to be crucial to the audit, etc.
4. An Adverse Opinion - If the auditor feels the financial statements were materially misstated or auditor feels there is a possibility of some sort of fraud.Although it is important to read what is the opinion of auditor regarding the financials of the company, but it is advisable that investors should not rely too much on the audit report. They should do proper analysis of financial statements as explained ahead in the book.

FOR MORE SUCH TYPE OF EDUCATION JOINT OUR ONLINE SERIES AND BATCHES AND BE A PRO TRADER CONTACT ON 7028 421 786.

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