Audit report: definition and types of reports

An audit report is a document that presents the annual accounts or financial statements of an enterprise. This is a very important document, as it provides quality information on the state of the company and, consequently, also makes it possible to know whether urgent measures need to be taken to ensure the viability and continuity of the company in question. 

What is an audit report and why is it important?

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

An audit report shows the state of the company's accounts, the company's liquidity, assets and liabilities, as well as all the elements that may make a company solvent or not, as well as know what the money has been spent on that the company had. In other words, it serves to determine whether a company is doing a good job or whether, on the contrary, the strategy needs to be redefined in order to balancing income and expenditure and thus ensure continuity. 

Types of audit report resolutions

Once the external auditor carries out the audit report, four different outcomes are possible:

• Clean or unqualified opinionThis is the case where the audit report gives a true and fair view of the company's accounts. 
• Qualified opinionThis is the case where the report shows that, although the accounts are clean, there are certain deviations in the accounts that do not allow them to be considered as “completely clean”. 
• Adverse or negative opinionThis is when it is confirmed that the deviations in the accounts are significant and put the cleanliness of the company at risk. 
• Abstention or opinion refusedWorst case scenario: This is the worst case scenario, as it occurs when the auditor in question has not had access or facilities to the information in the accounts necessary for the proper preparation of the audit report. 

Corporate: a tool to help

In this context, it is worth mentioning the importance of to have all documentation and information regarding expenditure and income of 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 comes with the guarantee and security of Edenred and Mastercard. It is a professional expense control tool which, among other features, makes it easy to recover VAT on meals, adjust and control expenses, generate reports and integrate them into the company's own systems, and keep track of expense notes at all times. unified and online. In this way, it becomes a perfect tool when it comes to managing company accounts, as well as allowing this management to be carried out digitally, quickly and easily.