Audit report: definition and types of reports

What is an audit report and what is its importance

A audit report is a document that must be carried out by an external auditor (external to the company to be audited) and who provides useful and truthful information about the annual accounts or the financial statements of the company. This information is of vital importance to the company, as it can be taken as the “Company's financial health”. 

An audit report shows the company's account status, its available liquidity, assets and liabilities, as well as all elements that may indicate whether a company is solvent or not. to know how the money has been spent which the company had. That is to say, it serves to know if a company is doing a good job or if, on the contrary, it is necessary to redefine the strategy in order to balancing income and expenditure and thus ensure continuity. 

Types of audit report resolution

Once the external auditor carries out the audit report, four distinct outcomes can occur:

• Unqualified opinionThis is the case where the audit report reflects the company's accounts faithfully. 
• Opinion with reservationsThis concerns the case where the report reflects that, although the accounts are clean, there are certain deviations in the accounts that do not allow them to be considered “completely clean”. 
• Adverse or negative opinionThis occurs when it is confirmed that deviations in the accounts are significant and risk the company's integrity. 
• Abstention or opinion deniedThis is the worst-case scenario, as it occurs when the auditor in question has not had access to or facilities for the account information necessary for the correct preparation of the audit report. 

Corporate: a tool to help

In this context, it is worth mentioning the importance of to have all the documentation and information relating to expenses and income from any company, large or small. Therefore, it is important for companies to take the necessary actions to have clean and gap-free accounting. 
A tool that can help both large companies and SMEs in this respect is Corporate. Corporate is a tool that has the guarantee and security of Edenred and Mastercard. It is a professional expense control tool which, among other features, allows for easy VAT recovery on meals, expense adjustment and control, report generation and integration into the company's own systems, and constant oversight of expense notes unified and online. This makes it a perfect tool for managing company accounts, as well as allowing this management to be carried out digitally, quickly and easily.