General Contents of Audit Report – What Are the Main Element Of the Report?

What is An Audit Report?

An Audit Report can be defined as an opinion about the financial statements of the company. Issued by the auditors, the main purpose is to convey the overall opinion about the integrity, and completeness of the financial statements, of the engaging party.

The Audit Report is supposed to be published with the Annual Report of the Company. The main parties interested in Audit Reports, and the overall opinion presented are investors, analysts, Company Management, and lenders.

This is because it shows the overall performance and the manner in which operations are being carried out at the respective organization.

The overall necessity to have a properly structured Audit Report lies in the realms of assurance, and a guarantee, per se, regarding the overall free and fair reporting of the financial position of the said organization, and the overall extent to which they have complied with internationally acclaimed accounting standards.

Therefore, the Audit Report is basically proof, given by the auditor, after a thorough review of the financial statements, and other respective assertions.

What are the General Contents in the Audit Report?

An Audit Report should ideally have the following contents.


This is generally addressed as ‘Independent Auditors Report’


Given the fact that Auditors are appointed by the shareholders of the company, the Audit Report is addressed to them, and it is subsequently declared so.

Furthermore, since they are the most important stakeholder group for which the Audit Report matters, the Audit Report is addressed to the shareholders.

Responsibility – (Responsibility of the Management, as well as the Auditor)

This clearly mentions the overall responsibility of the auditor to give a free and fair opinion about the financial statements, and it also stresses the management’s responsibility to cooperate with the auditor.

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The Scope of the Audit

The Scope of the Audit part of the Audit Report mentions that the audit has been conducted bearing in mind the overall accounting and auditing standards in the specific country.

In the same manner, it also talks about the role of the auditor in ensuring that there are no material misstatements, and all internal controls tests have been performed in order to determine the correctness of the financial statements.

The Opinion of the Auditor

The Opinion of the Auditor is the main crux, not only of the Audit Report but also of the overall auditing process that had been carried out. The Audit Opinion can be qualified, unqualified, adverse, or disclaimer of opinion, depending on the eventual outcome of the audit.

Basis of Opinion

This is an extension that explains the basis on which the auditor issued the particular judgment. It explains sufficient reasoning behind the judgment that was made.


This is duly signed by the auditor, as proof that he is well aware of his work, and it is accountable and responsible for the opinion that he has turned on.

  • Place, Date of the Signature and Date of the Audit Report

Emphasis of Matter

Additionally, the Audit Report can also contain a part titled Emphasis of Matter. This is to bring attention to certain parts within the organization where the auditor believes attention should be drawn.

Financial statements

The audit report should also report the financial statements that the reporting is issuing. These include the income statement, balance sheet, statement of change in equity, and note to financial statements.

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