Audit Manual - Core Treasury System Uttarakhand

Government of Uttarakhand
Audit Manual
b. Audit Report Analysis
The Auditor's report is a formal opinion, or disclaimer thereof, issued by either an internal auditor
or an independent external auditor as a result of an internal or external audit or evaluation
performed on a legal entity or subdivision thereof (called an ―auditee‖). The report is
subsequently provided to a ―user‖ (such as an individual, a group of persons, a department, a
government, or even the general public, among others) as an assurance service in order for the
user to make decisions based on the results of the audit.
An auditor‘s report is considered an essential tool when reporting financial information to users.
Since many third-party users prefer, or even require financial information to be certified by an
independent external auditor, many auditees rely on auditor reports to certify their information in
order to attract investors, obtain loans, and improve public appearance.
It is important to note that auditor's reports on financial statements are neither evaluations nor
any other similar determination used to evaluate entities in order to make a decision. The report
is only an opinion on whether the information presented is correct and free from material
misstatements, whereas all other determinations are left for the user to decide.
An audit report should contain following contents:
• Details of department audited: This section include name of department audited, region, address of
office etc.
• Name and designation of auditee: This section include name and designation of department
secretary, head of department and other key individuals
• Scope of audit: This includes details of areas to be reviewed. For example in a procurement audit
following areas need to be reviewed:
Indenting process
Tendering process
Approval process
Ordering process
Vendor selection
Good/Service receipts
Payments
• Audit period: This section specifies time period to be covered under the audit. Normally audit period
is classified into 4 catagories:
Concurrent
Monthly
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