Difference between Audit Report and Audit Certificate | Auditing Important Topics

Difference between Audit Report and Audit Certificate

Auditing & Assurance

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.

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