Question

A public company audit report is presently formatted how (excluding CAMs)

a. Title with the word "Independent" & addressee, Management’s Responsibility for the Financial Statements, Basis for Opinion, Opinion on the Financial Statements, Signature, Tenure, Location, and Date

b. Title with the word "Independent" & addressee, Management Responsibility, Auditor’s Responsibility, Opinion on the Financial Statements, Signature, Tenure, Location, and Date

c. Title with the word "Independent" & addressee, Opinion on the Financial Statements, Basis for Opinion, Signature, Tenure, Location, and Date

d. Title with the word "Independent" & addressee, Management’s Responsibility for the Financial Statements, Basis for Opinion, Opinion on the Financial Statements, Signature, Tenure, Location, and Date

Answer 1

An audit report typically has the following order:

• Title with the word 'independent'
• Addressee
• A statement that the financial statements have been audited
• Management's repsonsibility towards financial statements
• Auditor's responsibility
• Opinion
• Basis for Opinion
• Other Reporting Responsibilities
• Signature of Auditor
• Tenure of auditor
• Place of signature
• Date of the report

Basis the above format and given the options provided in the question, the closest option is Option B.

In Options A & D, basis for opinion should not appear before the opinion on the financial statements.

In Option C, Management's responsibility and Auditor's responsibility are missing.

Hence, the most comprehensive option is Option B.

In case of any questions on the above, please share the same in the comments section.

All the best!