Identify the qualities of a good audit report.

The audit report is the end product of every audit. It is the medium through which the auditor expresses his opinion on the economic information under audit. The form and content of the audit report are of utmost importance since it is only through the audit report that the users of the information come to know of the opinion of the auditor. A good report from the auditor should normally be brief, precise, simple, and intelligible to common man, explicit, free from fear and favor, not true and fair opinion unless supported by the evidence. A good report from the auditor should normally have the following qualities:

  • Factual Information.
  • Independent and unbiased approach.
  • Effective presentation.
  • Honest identification of weakness in control.
  • Positive outlook, balanced criticism and logical suggestions.
  • Precise, brief and relevant.

The report must be unambiguous and complete. The auditors are normally not expected to interfere into the justification of management policies or operations. They need not comment on unfair business practices of the company under audit. The report should demonstrate an impartial attitude. It should cover the interest of prospective or potential shareholders and creditors.

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