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Auditor’s Report, Opinion, Certificate

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Financial Statement Analysis-FIN621
VU
Lesson-23
ANNUAL REPORT GENERATED BY BUSINESS
Auditor's Report, Opinion/Certificate: There are four types of Audit certificates.
i)
Unqualified: It states that Financial Statements present information in conformity with
GAAP.
ii)
Qualified: It qualifies the Report with certain observations.
iii)
Adverse: It states that financial statements have not been presented fairly in accordance
with GAAP.
iv)
Disclaimer: Auditor expresses his inability to report on Financial Statements for various
reasons.
Statements of Audit Reports
"Un-qualified Audit Certificate/Opinion": We have examined the accounts/financial
statements of________ up to the year ended 30th June, _____, and other record based on these accounts
and we got all the information required by us. In our opinion the financial statements and the accounts
on which they are based have been prepared in conformity with generally accepted accounting
principles, and present a true and fair position of the affairs of _________________.
"Qualified Audit Certificate/Opinion": We have examined the accounts of _________
up to the year ended 30th June, _______ and other record based on these accounts and we got all the
information required by us. In our opinion the financial statements and the accounts on which they are
based have generally been prepared in conformity with the generally accepted accounting principles,
and these present a true and fair position of the affairs of _________ subject to the observations and
findings mentioned in the enclosed report.
"Adverse Audit Certificate/Opinion": We have examined the accounts of __________
up to the year ended 30th June, _____ and other record based on these accounts and we got all the
information required by us. In our opinion the financial statements and the accounts on which they are
based have not been prepared in conformity with generally accepted accounting principles, and these do
not present a true and fair position of the affairs of _________ because of the errors mentioned in the
enclosed report.
Disclaimer of opinion: We are unable to issue an audit certificate on the accounts of
________ for the period _______, as we could not verify the financial statements and the accounts on
which they are based due to non-availability of the necessary information or because of our inability to
visit (Locations) or due to the non-cooperation by the auditee staff in providing the necessary records
(name the documents).
Another form of Audit Report is as follows:-
To the Stockholders and Board of Directors of MOOSA & CO.
We have audited the accompanying balance sheet of Moosa & Co as of June 30, 20 ____,
and the related statements of income, retained earnings, and cash flow for the year then ended.
We conducted our audit in accordance with generally accepted auditing standards.
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Financial Statement Analysis-FIN621
VU
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the financial position of Moosa & Co as of June 30, 20______, and the results of its operations
and its cash flows for the year then ended in conformity with generally accepted accounting principles.
Peshawar
Signature
September 29, 20____
Certified Chartered Accountant
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Table of Contents:
  1. ACCOUNTING & ACCOUNTING PRINCIPLES
  2. Dual Aspect of Transactions
  3. Rules of Debit and Credit
  4. Steps in Accounting Cycle
  5. Preparing Balance Sheet from Trial Balance
  6. Business transactions
  7. Adjusting Entry to record Expenses on Fixed Assets
  8. Preparing Financial Statements
  9. Closing entries in Accounting Cycle
  10. Income Statement
  11. Balance Sheet
  12. Cash Flow Statement
  13. Preparing Cash Flows
  14. Additional Information (AI)
  15. Cash flow from Operating Activities
  16. Operating Activities’ portion of cash flow statement
  17. Cash flow from financing Activities
  18. Notes to Financial Statements
  19. Charging Costs of Inventory to Income Statement
  20. First-in-First - out (FIFO), Last-in-First-Out (LIFO)
  21. Depreciation Accounting Policies
  22. Accelerated-Depreciation method
  23. Auditor’s Report, Opinion, Certificate
  24. Management Discussion & Analyses (MD&A)
  25. TYPES OF BUSINESS ORGANIZATIONS
  26. Incorporation of business
  27. Authorized Share Capital, Issued Share Capital
  28. Book Values of equity, share
  29. SUMMARY
  30. SUMMARY
  31. Analysis of income statement and balance sheet:
  32. COMMON –SIZE AND INDEX ANALYSIS
  33. ANALYSIS BY RATIOS
  34. ACTIVITY RATIOS
  35. Liquidity of Receivables
  36. LEVERAGE, DEBT RATIOS
  37. PROFITABILITY RATIOS
  38. Analysis by Preferred Stockholders
  39. Efficiency of operating cycle, process
  40. STOCKHOLDERS’ EQUITY SECTION OF THE BALANCE SHEET 1
  41. STOCKHOLDERS’ EQUITY SECTION OF THE BALANCE SHEET 2
  42. BALANCE SHEET AND INCOME STATEMENT RATIOS
  43. Financial Consultation Case Study
  44. ANALYSIS OF BALANCE SHEET & INCOME STATEMENT
  45. SUMMARY OF FINDGINS