Types of Audit Reports:
1. Unqualified Audit Report: The auditor issues an unqualified audit report to financial statements when auditors found no material misstatements after their testing. Therefore, this report contains an unqualified opinion from an independent auditor.
2. Qualified Audit Report: The qualified Audit report is the reported issue by auditors to the financial statements that found material misstatements. But those material misstatements are not pervasive.
3. Adverse Audit Report: An adverse Audit Report is a type of audit report issued to the financial statements when auditors found material misstatements in the financial statements. The misstatements found here are different from the material misstatements found in qualified audit reports. They are materially misstated for themselves and affect others’ accounts and items in the whole financial statements. These are called pervasive.
4. Disclaimer Audit Report: The disclaimer audit report is the report that issues the financial statements where there is matter to auditor’s independence and those matters cause auditors not be able to obtain sufficient audit evidence to support their opinion.
Special Purpose Report: A special-purpose financial report is intended for presentation to a limited group of users or for a specific purpose. For example, special-purpose financial statements are prepared for tax reporting, bank reporting, and industry-specific reporting. Most SME’s (Small to Medium Enterprises) and not for-profit entities will produce a simple profit and loss and balance sheet, in any format that the business requires or desires them to be in by following specific guidelines or reporting requirements established by the directors, owners or members.
General Purpose Report: General purpose financial reports provide financial information about the reporting entity that is useful to existing and potential investors, lenders and other creditors in making decisions about providing resources to the entity. General-purpose financial statements are issued throughout the year and includes a balance sheet, income statement, statement of owner’s equity/retained earnings, and statement of cash flows.
