How to Prepare a Financial Audit

How to Prepare a Financial Audit - Accountants

All companies that are publicly traded are required to release a financial audit report to guarantee the accuracy of their financial statement. There are very specific guidelines for financial audit reports that you must follow. This article will help you learn how to prepare a financial audit report.

How to Prepare a Financial Audit Report

A financial audit report should be written like a business letter — clear and without excess flowery language. You must always use the standard format for a financial audit report, which is as follows:

1. Introduction

2. Responsibilities of Directors and Auditors

3. Basis of Opinion and the Opinion

Beginning of a Financial Audit Report

The title of your financial audit report should always be “Independent Auditor’s Report.”

In your heading, you should make sure to include the following:

– the name of your company

– the name of the author of the report

– the address of your company

Write an address to the shareholders and board of directors of your company. Although you want to make sure that it is directed towards all audiences, you should treat your readers as if they are intelligent and knowledgable about how the stock market works.

Introduction of a Financial Audit Report

All financial audit reports should have an introduction that contains the name of the corporation and year to which the audit pertains. The introduction should also make it clear to the readers where responsibility lies. It is the company’s responsibility to provide financial statements for the audit firm, and it is the audit firm’s responsibility to give their opinion based off of the financial statements provided by the company.

Basis of Opinion in a Financial Audit Report

The next portion should describe the basis of opinion. It should also be in a business style — descriptive, but without unnecessary flowery language. Make the reader knows that the audit was in accordance with Generally Accepted Audit Standards (GAAS). Also, make sure to include every type of information that was examined as part of the audit, as well as how the audit was conducted. The purpose of this paragraph is for the reader to feel your opinion is trustworthy and accurate.

Opinion Portion of a Financial Audit Report

The final portion of the financial audit report is the actual opinion. Your opinion should be clearly stated in the first sentence of this portion. It is important that this portion is very clear and you do not want to confuse the reader with convoluted business language.

Additional Help

If you need assistance in preparing your financial audit report, you can contact an accountant. With the help of TalkLocal, you can be on the phone in minutes with up to three high quality accountants in your area that are available when you are.

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