C.A. is the professional and independent auditor . He has power to check and audit the accounts of Company and express his views and opinion . After auditing , he will make a report in which he explains his opinion on company's financial statement . That report is called audit report or auditor's report .
Now , we discuss how can C.A. make auditor's report ? For making auditor's report , he will use certain steps and after this he can prepare this report . First of all he will go to company's office where he will audit the accounts and financial statement of company or after adopting ERP software like Tally.ERP 9 , no need to go physically to company's office but check company's account through online network of ERP softwares . He will take also help of his team to check mathematical , journal entry rule and also ledger mistakes . After this he will examine the profit and loss account and balance sheet of company and also cash flow statement . After satisfying from companies statements and companies vouchers as proofs . He will make qualified or adverse report . Qualified audit report means that he saw the financial statements and according to his opinion , it shows true and fair view of companies operating and financial position .
Adverse auditor's report is that report in which C.A. does not satisfy about company's financial statements . When he finds that large number of mistakes , error , frauds exist in accounts of company and it is not showing fair and correct view of company's financial statements and it is also not according to GAAP . So, C.A. will mention all these this in his adverse opinion report . Because C.A. is not employee of company , he is guide of investors and shareholder . After presenting auditor's report , value of financial statement is for investors because they can take the decisions to invest in company's shares and stocks and after deep study of audited financial statements and auditor's report .
Now , we discuss how can C.A. make auditor's report ? For making auditor's report , he will use certain steps and after this he can prepare this report . First of all he will go to company's office where he will audit the accounts and financial statement of company or after adopting ERP software like Tally.ERP 9 , no need to go physically to company's office but check company's account through online network of ERP softwares . He will take also help of his team to check mathematical , journal entry rule and also ledger mistakes . After this he will examine the profit and loss account and balance sheet of company and also cash flow statement . After satisfying from companies statements and companies vouchers as proofs . He will make qualified or adverse report . Qualified audit report means that he saw the financial statements and according to his opinion , it shows true and fair view of companies operating and financial position .
Adverse auditor's report is that report in which C.A. does not satisfy about company's financial statements . When he finds that large number of mistakes , error , frauds exist in accounts of company and it is not showing fair and correct view of company's financial statements and it is also not according to GAAP . So, C.A. will mention all these this in his adverse opinion report . Because C.A. is not employee of company , he is guide of investors and shareholder . After presenting auditor's report , value of financial statement is for investors because they can take the decisions to invest in company's shares and stocks and after deep study of audited financial statements and auditor's report .
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