All 19 Audit Report & Opinions questions
More in Audit Report & Opinions
What is an unmodified (unqualified) audit opinion? What are the types of modified audit opinions? What are the main elements of an auditor's report? What is the significance of the date of the auditor's report? When is a qualified opinion issued? When is an adverse opinion issued? When is a disclaimer of opinion issued? What is the difference between a misstatement and a scope limitation, and how do they map to opinions? What are Key Audit Matters (KAMs)? What does the Basis for Opinion section contain?
Advertisement
Auditing & Assurance › Audit Report & Opinions

Who is the auditor's report addressed to and why?

Beginner

Answer

The report is usually addressed to the shareholders/members of the entity (or those charged with governance), because they appoint the auditor and are the primary intended users of the opinion. Addressing it correctly clarifies the intended audience and the auditor's reporting relationship, distinct from management who prepare the statements.
Real-world example The statutory audit report is addressed to the members (shareholders) who appointed the auditor at the AGM.

Common follow-ups: Why address shareholders rather than management? | Who appoints the auditor?

Audit Objectives & Types Ethics & Independence Audit Report & Opinions
All 19 Audit Report & Opinions questions