What Is the Standard Audit Report?
A report that summarizes an audit by a public accounting firm on a company’s liquidity health is called the standard audit report.The FactsWhen the auditing of a company’s financial records is done by a public accounting firm, the findings are compared to the internal audit report to see if there were errors or discrepancies. Errors might not bode well with authorities who might suspect the firm had intended to mislead the public.The AdvantagesIf the audit is clean, the standard audit report is issued, which indicates the audit found no malpractices. That kind of report is called the unqualified opinion. It means that management’s financial statements are in conformity with acceptable accounting standards.The Type of ReportsWhen a qualified report is issued, it means the company’s financial statements are in violation of acceptable accounting standards. In this case there is likely to be a penalty from the regulatory authorities, usually in the form of a fee. The most damning report is
