Audit report Essay Example | Topics and Well Written Essays - 1500 words

Audit report - Essay Example The two major perceptions are in line with the Audit Report’s adding significant credibility to the companies’ financial statements. A credible financial statement is a good basis for making a more informed management decisions as well as stakeholders’ decisions (Asare, 2009). Consequently, the IAASB is currently processing the enhanced auditor’s report. The IAASB’s research focuses on adhering to the different stakeholders’ demand for a more informed audit report. The new audit report will serve as a global solution to global popular demand for a change in the current audit reports’ standardized formats. The stakeholders’ audit report request is grounded on the growing complexities of the financial reports. The stakeholders include the investors, residents, managers, community, and employees. The standard audit report formats include the qualified opinion format, unqualified opinion format, and the adverse opinion format. The same board correctly affirms that international leaders must do their share to ensuring the audit report contains additional information needed by the decision makers. A more informed audit report contains additional relevant and valid information pertaining to the fairness or trueness of the finan cial report data (IFAC.org, 2013). The new audit report will include some notable changes. One of the major changes is to necessarily allow the external auditors to include comments to their audit reports (Gold et al., 2009). One of the reasons for the changes are necessary is that the comments will deliver additional relevant and valid information to the stakeholders, in terms of auditor’s specific audit responsibilities and tasks. The external auditor’s favorable comments will surely encourage the investors, community leaders, creditors, customers, and other affected stakeholders to invest or enter into any relevant business transaction with the company. In this regard, the IFAC accounting board is