50 Free Audit Report Templates [Format] – Internal, External

An Audit Report is a written document that outlines an independent opinion or review and examination of a company’s financial statements, management accounts, management reports, and other related reports like reports and compliant reports, conducted by an auditor to ascertain that they are compliant with the Generally Accepted Accounting Principles (GAAP).

Fundamentally, it is the auditor’s formal avenue of communication to an entity stating informed conclusions of the audited financial statement.

Free Audit Report Templates

Free Audit Report Template 01

Printable Audit Report Template 02

Editable Audit Report Template 03

Audit Report Template in Word 04

Free Printable Audit Report Template 05

Editable Audit Report Template in Word Format 06

Printable Audit Report Template PDF 07

Free Audit Report Template 08

Internal Audit Report Template 09

Sample Audit Report Template 10

    Variations Permitted by GAAS

    The audit report is authored in a standard format stipulated by the Generally Accepted Auditing Standards (GAAS). However, GAAS allows certain variations of the report depending on the circumstances. These variations are clean opinion, qualified opinion, adverse opinion, and disclaimer opinion. The variations shall be discussed later in the article as “Types of audit reports.

    Uses of Audit report

    An audit report is used by different stakeholders of an entity such as management, directors, investors, shareholders, banks, and government agencies. The audit report communicates the financial position of an entity based on the assessment of a third-party professional auditor. Banks and lenders will generally require the report to be submitted before awarding a loan to an entity.

    Government agencies such as the IRS and Securities and Exchange Commission (SEC) require that entities attach an audit report when filing tax returns and financial statements, respectively.

    Investors use the report to establish the reliability of financial statements of a business currently and in the future before investing.

    Shareholders and directors use the report to assess the integrity and competency of management. The audit report can also be used to illustrate the utilization of resources within a company.

    Audit Report Template with Power Words 11

    Editable Audit Report Template in word 12

    Audit Findings Report Template 13

    Professional Audit Report Template 14

    Customizable Audit Report Example 15

    Customizable Audit Report Sample 16

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    Professional Audit Report Template 18

    Free Audit Report Template Sample 19

    Free Audit Report Template 20

      How an Auditor’s Report Works

      An auditor’s report is not an evaluation or measure of the profitability of an entity. Primarily, it represents an opinion on the company’s compliance with standard accounting practices. As a result, it shows that the entity’s financial statements can be relied on to define its financial position. Additionally, it represents the opinion of a third party, free of bias, on the integrity of the company’s financial records. As a result, the SEC can determine if they rely on the financial statements when public companies report their earnings.

      Free Audit Report Template 21

      Editable Report Template in word 22

      Printable Report Template Pdf 23

      Editable Audit Report Template 24

      Project Audit Report Template 25

      Free Audit Report Template Example 26

      Sample Audit Report Template Example 27

      Free Audit Report Template Sample 28

      Professional Audit Report Template 29

      Customizable Audit Report Template Example 30

        Types of Audit Report

        As earlier stated, the variations of audit reports form grounds of the different types of the same. Different auditor’s reports will have different audit opinions depending on the misstatements found in an entity’s financial statements. Consequently, different types of auditor reports provide different levels of assurance. These types are:

        Unqualified audit report (clean audit report)

        An unqualified or clean report is the best type of report an entity can receive from an auditor. It implies that the auditor found the financial statements free of any misrepresentations/misstatements after the audit. Additionally, it states that its financial records have been prepared and presented following Generally Accepted Accounting Principles (GAAP) regulations. A clean audit report is also interpreted as reflecting the management’s integrity as up to standards. However, most stakeholders will consider if the report is from an independent auditor before accepting this derivation.  

        Qualified audit report

        A qualified report is received when there are limited, or the GAAP has not sustained any misstatements or misrepresentations in financial statements and the statements; therefore, the auditor has a qualified opinion in that regard. A qualified report is prepared similarly to an unqualified report but with an additional paragraph that outlines why the audit report is not unqualified. This means any other information not highlighted in the paragraph is considered true and fair based on the auditor’s examination.

        Adverse audit report

        An adverse report indicates through a sufficient examination of the company records there are pervasive misrepresentations in the company’s financial records. It states that the auditor found material misstatements that impact other accounts and the financial statements in general. Consequently, the integrity of all the other information presented in the financial records cannot be ascertained as they do not meet the GAAP threshold in terms of compliance. This report outlines all the misstatements identified and how they impacted the entity’s financial statements and decision-making. This is the worst variation/type of audit report a company can receive as it harms the trust of investors, lenders, and other users of the report.

        Disclaimer audit report

        A disclaimer report is obtained when the auditor cannot make a definite and accurate opinion on the entity’s financial status due to infringement of the auditor’s independence. Common infringements that cause auditors not to have an accurate opinion are limited access to crucial information, absence/omission of significant financial records, etc. 

        Free Internal Audit Report Templates

        free word document Audit Report Template 31

        printable example of Audit Report Template 32

        Editable Audit Report Template Example 33

        clinical Audit Report Template 34

        Editable Audit Report Template 35

        Printable Audit Report Template Sample 36

        Professional Audit Report Template 37

        Customizable Audit Report Template 38

        Printable Audit Report Template in Word 39

          Components of an Audit Report template

          An auditor’s report should illustrate the auditor’s detailed observations and opinions related to the financial position based on provided financial records. It should point out weaknesses, errors/frauds, and lapses observed in the records. Therefore, an audit report template should have the necessary components to communicate this information.

          The fundamental components of an auditor’s report are:

          Responsibilities of the auditor and addressee

          The report should state it shall represent the auditor’s opinion based on their professional examination of company records. It is the management’s responsibility to provide and grant access to all financial records of the entity. The information must be accurate to the best of their knowledge. The auditor’s responsibility is to review all the financial documentation presented to them and form an entity’s opinion. It should also identify the person or entity that appointed the auditor, referred to as addressee –the stakeholders, board of directors, etc. It should also specify the period covered by the financial records used to form the opinion.

          The scope

          The scope shows the extent of documentation examined in the audit process. The scope can be defined by stating the records examined. Common areas covered by an audit scope are company accounts, balance sheet, profit and loss account, budget, and cash flow statements. This section represents all the processes and resources the auditor used to base their opinion.

          Auditor’s opinion

          Lastly, the auditor’s opinion and observations, and comments on the entity’s financial and operational position should be presented. The opinion and comments should be free from bias.

          The report should show the auditors opinion on the following:

          • Arithmetic accuracy of financial statements and whether the figures correspond to books of accounts
          • In a qualified report, the auditor should give the reasons why financial statements do not represent a free and fair view of the entity’s financial position
          • In an unqualified report, the auditor should state if the records give an accurate and free representation of the entity’s compliance.

          Customizable Audit Report Template in Word 40

          Professional Audit Report Template in Word 41

          Printable Audit Report Template in Word 42

          Editable Audit Report Template in Word 43

          Customizable Audit Report Template in PDF 44

          Professional Audit Report Template in Word 45

          customizable Audit Report Template in Word 46

          Printable Audit Report Template in Word 47

          Professional Audit Report Template in Word 48

          Customizable Audit Report Template Example 49

            Advantages of Audit Reports

            Audit reports have a wide range of advantages when it comes to running a company.

            Below are common advantages that companies have been observed to benefit from audits;

            • Audits help assure third-party users of the credibility of an entity’s financial statements. Audit reports are prepared by independent auditors who are unlikely to misrepresent the financial status of an entity.
            • A good, desirable audit report indicates the integrity of management which is a desirable trait in the eyes of stakeholders.
            • Periodic auditing is a requirement by law in many countries. Auditing financial records are thus one way of ensuring an entity is compliant with the rule of law.
            • Shareholders require audit reports to determine if the company records can be trusted. The report communicates this in a layman’s language, meaning each shareholder can understand the financial position even with a background in accounting.
            • Audits help parent companies manage their subsidiaries by having an audit examine their financial records and provide a status report.
            • The auditor’s report helps an entity determine if there are any concerns (both financial and non-financial) associated with its books. This can help in mitigating financial problems such as bankruptcy and any foreseeable issues.  

            Limitation of Audit Reports

            The following limitations are applicable regarding the auditing process;

            • The scope of the entity’s audit might be limited due to access restrictions on documentation by management which might hinder the shareholders from getting an accurate opinion from the auditors.
            • Time is often a constraint to the auditing process. This will consequently result in a hurried audit report which might prevent the entity from obtaining a wholesome report from the auditor.
            • Audit reports will often not take into consideration factors besides the financial records presented. Therefore, some inherent and fraud risks might not be accounted for, which exposes the company to continued fraudulent behaviours without detection.
            • Some auditors might carry out mediocre audits to finish and move to the next job, resulting in poorly done reports that are not beneficial to the company.
            • Biasness in opinion. To avoid this, auditors are expected to observe the auditors’ code of ethics, which directs that auditor should audit companies independent of conducting objective audits. 

            Key Takeaways

            • An auditor’s report outlines the responsibilities of the auditor and management in the audit process, the scope of a company’s audit, and the auditor’s opinion and comments regarding the financial status of a company.  Individual auditors or audit firms conduct audits.
            • An independent auditor should prepare the audit report to ensure there is no bias in stating the company’s financial status. The auditor’s report is used by third parties like lenders, shareholders, and government agencies to determine if the company’s financial statements are compliant with GAAP.
            • Audit reports are essential in establishing whether a company’s financial documents can be relied on to make decisions and illustrate management’s integrity in producing factual and accurate financial information to directors and stakeholders.
            • However, the credibility of audit reports is limited due to the scope of the audit, time constraints, and the auditor’s ethics, among others.

            About This Article

            Jean Murray
            Authored by:
            Business Law, Tax Content, Business Startup Issues, Accounting, Finance
            With an MBA and Ph.D., Jean Murray stands as a luminary in business law and tax content, dedicating over a decade to the niche. Her academic journey spans over 35 years, teaching at esteemed business and professional schools. Notably, she served as an associate professor at Palmer College of Chiropractic between 1995 and 2009, imparting knowledge on accounting, business law, finance, and the nuances of business startups. Beyond academia, Jean's entrepreneurial spirit shone through as she helmed Emence Enterprises, LLC for 15 years, penning insightful articles on business startup challenges and publishing comprehensive startup guides for professionals. Her blend of academic and entrepreneurial expertise positions her as a trusted authority in the business sphere.

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