The founder of CPAfanyi.com, Shanghai Highlights Business Management Consulting Co., Ltd., has been engaged in translation of various types of financial reports, especially auditors’ reports for 20 years. The translation team of CPAfanyi.com has developed independently a set of Chinese-English translation templates for auditor’s reports in order to ensure all the translation works comply with the accounting language requirements by IFRS.
The term “auditor's report or audit report” refers to the written document which expresses the CPA’s audit opinion on the entity’s annual financial statements, following the performance of the necessary audit procedures in accordance with the requirements of the Independent Auditing Standards.
The CPA is responsible for the truthfulness and legitimacy of the audit report. The term “the truthfulness of the audit report” refers to the requirement that the audit report should objectively reflect the CPA’s scope and basis of the audit, the audit procedures performed and the audit opinion that should be expressed. The term “the legitimacy of the audit report” refers to the requirement that the preparation and issuance of the audit report should be in accordance with the requirements of both the Law of PRC on CPAs and the Independent Auditing Standards.
The CPA should consider whether there are any limitations in the scope of the audit, whether any unadjusted events, or events that have not been adequately disclosed exist. The CPA should according to the extent of impact on the financial statements, issue an audit report with an unqualified opinion, a qualified opinion, an adverse opinion or a disclaimer of opinion. When a qualified opinion, an adverse opinion or a disclaimer of opinion is expressed, the CPA should clearly state the reasons and, if possible, indicate the extent of their impact on the financial statements.
After being signed and stamped by the CPA and the accounting firm, the audit report should be sent to the client directly and should not be subject to approval by other organizations. When issuing the audit report, the CPA should attach the audited financial statements to his or her report.
The CPA should request that his client use the audit report in the manner stated in the Audit Engagement Letter. Any consequences arising from the client’s or other third parties’ improper use of the audit report are not the responsibility of the CPA or his accounting firm.