Difference between Audit Report and Audit Certificate
Difference between
In this article, we will differentiate Audit report and Audit Certificate. Audit report and audit certificate both are issued by a auditor. Both audit report and audit certificate are important for organisations.
Audit Report
Audit report is a statement on financial position of the company
which is issued after the conclusion of audit. It is a medium through which an
auditor expresses his opinion on the financial statements under audit. It generally shows the nature and scope of
audit conducted by the auditor and his opinion on the final accounts of the
company. It is an important part of audit because it provides the results of
the audit conducted by the auditor. The audit report is the final and ultimate
report of audit process.
Audit Certificate
Audit certificate is a document which contains a written confirmation of the accuracy of the information given in it. It does not contain any opinion. It confirms the accuracy of the figures with the books of accounts. Different auditors will give same certificate.
Difference between Audit Report and Audit Certificate:
|
Points |
Audit Certificate |
Audit Report |
|
Meaning |
It is a written confirmation of the accuracy
of the information given in it. |
It is a written statement of collected and
considered information so as to give a clear picture of the state of affairs
of the business. |
|
Opinion |
It does not contain any opinion. It confirms
the accuracy of the figures with the books of accounts. Different auditors
will give same certificate. |
It is based on opinion of the auditor.
Different auditors may give different opinion. |
|
Basis |
On the basis of data which can be measured. |
On the basis of books of accounts and
information obtained. |
|
Guarantee |
It guarantees the correctness of data in
absolute terms and can be checked. |
Does not guarantee the correctness of
statement and data in absolute terms |
|
Coverage |
It does not cover all accounts but part of
accounts for which certificate is required. |
It covers all accounts of the concern. |
|
Responsibility |
Auditor is directly responsible if anything
is found wrong in the certificate given by him. |
Auditor does not guarantee the correctness
of books of accounts hence he is not responsible if anything is found wrong
in the books. |
|
Suggestion |
It is not suggestive in nature. |
It is suggestive in nature. |
|
Nature |
It is fact oriented hence objective. |
It is opinion oriented hence subjective |
|
Format |
Particular format is not required. |
Format is required. |
Post a Comment
Kindly give your valuable feedback to improve this website.