What is the auditors report?
The auditors’ report is a summary of the results of an audit, or examination of the financial statements by an independent firm of certified public accountants. The audit is an attempt to determine whether a company’s financial statements report the company’s financial status accurately and reliably. During an audit, for example, the auditors investigate a company’s internal accounting controls, confirm the existence of many assets, and gather supporting information from external sources. The auditors make sure the financial statements are complete, reasonable, and prepared consistent with GAAP at a set time. If the auditors consider the statements are fair events of the company’s financial position in relation to GAAP, they issue an “unqualified” opinion. The Notes The notes are required reading to understand the financial statements. Companies use notes to explain how they arrived at the numbers in the financial statements and to describe any significant events or changes in procedur
