Audit report Essay Example | Topics and Well Written Essays - 1500 words

Audit report - Essay ExampleThe two major perceptions are in line with the Audit Reports adding important credibility to the companies financial statements. A credible financial statement is a good basis for making a more sure management decisions as well as stakeholders decisions (Asare, 2009).Consequently, the IAASB is currently processing the enhanced size upors report. The IAASBs research focuses on adhering to the different stakeholders demand for a more informed audit report. The new audit report will serve as a global solution to global popular demand for a qualify in the current audit reports standardized formats. The stakeholders audit report request is grounded on the growing complexities of the financial reports. The stakeholders acknowledge the investors, residents, managers, community, and employees. The standard audit report formats include the qualified opinion format, unqualified opinion format, and the adverse opinion format. The same board correctly affirms th at international leaders must do their share to ensuring the audit report contains additional randomness needed by the decision makers. A more informed audit report contains additional relevant and valid information pertaining to the fairness or trueness of the financial report data (IFAC.org, 2013).The new audit report will include some notable changes. One of the major changes is to necessarily allow the external auditors to include comments to their audit reports (Gold et al., 2009). One of the reasons for the changes are necessary is that the comments will deliver additional relevant and valid information to the stakeholders, in terms of auditors specific audit responsibilities and tasks. The external auditors favorable comments will surely encourage the investors, community leaders, creditors, customers, and other alter stakeholders to invest or enter into any relevant business transaction with the company.In this regard, the IFAC accounting board is