Audit Report and Certificate
i. The term „report‟ is used where an expression of opinion is involved. The term „certificate‟ is preferable where the auditor comments on or verifies facts
ii. The Auditor Report is based on facts, estimates and assumptions whereas Auditor’s Certificate is based on actual facts
iii. Auditor Report is not a guarantee of the absolute correctness & accuracy of the books of accounts. But the auditor certificate serves as a guarantee of the absolute correctness & accuracy of the books of accounts
iv. If the Auditor Report is later on found to be wrong, he cannot be held responsible since he has given merely his opinion on the state of affairs of the company. But if the duly signed certificate is found as wrong, he will be held responsible
|Basis||Audit Report||Audit Certificate|
|Meaning||An Audit Report is an expression o opinion on the true and fair vie presented financial statements||Certificate is a written confirmation w of the accuracy of the fact state therein and does not involve an
estimate of opinion.
|Utility||The term audit report is used when the auditor expresses his opinion on the financial statements||The term certificate is used when the auditor verifies certain exact fact e.g. Royalty payment made t foreign collaborators, value o import/exports of a company during a financial year.|
|Implication||Audit report implies that the auditor
– Has examined relevant records i accordance with generally accepted auditing standards; and
– Is expressing an opinion whether o not the financial statement representing a true and fair view o the state of affairs and of the working results of the enterprise.
|A certificate implies that the Auditor
– Has verified certain precis figures; and
– Is in a position to vouch their accuracy as per the examination o documents and books of account produced before him.
|Accuracy||The Auditor is responsible for ensuring that the report is based on factual date that his opinion is in accordance wit facts, and that it is arrived at b application of due care & Skill.||The Auditor is responsible for the factual accuracy of what is state therein.|