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Audit Reports gives the visibility to the management as well as to the Department audited the degree of compliance to the required management system.
Definition of the auditing profession set procedures carried out by a person or group of persons for the purpose of expressing an opinion neutral subject matter is so available to the person or persons who carry out the profession all the required audit rules recognized and related to the person of the auditor (general rules for the audit) that are audit procedures in accordance with the rules also accepted audit (audit rules relating to field work) and take into account in the preparation of the opinion of the auditor (auditor's report) as stated in the recognized auditing rules during the preparation of the auditor's report
Audit Report is a document used by the Auditors to express their opinion on the financial statements they have audited. Auditors' opinion is that financial statements give (or not give) true and fair view at a specific date.
Audit reports can be different due to scope and nature of the assignments. For Example: Auditors' Report of External Auditor and Auditors' Report of Internal Auditor.
Findings of the Auditors are not part of the Audit Report. Major audit findings their impact and intensity along with recommendations are reflected in a seperate document known as "Management Letter".
The purpose of the audit report is to summarize the findings in a way that auditee management can readily understand and see the impact of these findings.
The report should not include specific recommendations for corrective action. It is the auditee’s responsibility to devise and effectively implement corrective actions appropriate to the observations and nonconformities found in the system.
In internal audit situations, the auditee typically has directive and consent powers with respect to corrective actions.
Audit reports are often used:
- As a basis for initiating corrective and preventative action measures by auditee and/or management. Audit results provide objective evidence and unequivocal guidance as to changes and improvements that may be needed in the system. Because audit results are objective and impartial, they can influence unbiased business decisions.
- To aid in making cost-effective financial decisions relating to improvement. Organizations stay in business by making a profit, or in the case of not-for-profit organizations, by being able to meet its financial obligations. Management concerns itself with the most efficient use of the company’s available dollars. Even in regard to quality, management must optimize the cost expended vs. the quality provided. The audit report assists management in making decisions to improve a process or product in the most cost-efficient way.
- As a factor in decisions to audit outside suppliers.
- To determine acceptance under customer mandated requirements; for example, registration to national or international quality system requirements.
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