Audit report is a kind of report submitted by an auditor which represents the scope, purpose and result of audit. Auditor also provides some suggestions and recommendations which is a part of this report. Audit report describes the financial position of an organization. It is written in the standard format. Having an effective audit system is important for a company because it enables it to pursue and attain its various corporate objectives. Auditors evaluate risks of material misstatement in a company’s financial reports. Audit report helps preventing fraud and misappropriation of its assets, and minimizing its cost of capital.
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