What is the difference between audit report and audit certificate?

Answer 1

Guidance Note on Audit Reports and Certificates for Special Purposes

1. Introduction

1.1 Government authorities may, under various statutes or notifications, require reports or

certificates from auditors in support of statements or other information prepared by an enterprise.

Reports or certificates on specific matters may also be required from auditors by an enterprise,

for its own special purposes. These reports or certificates cater to specific requirements of the

individual users unlike a 'general purpose report' e.g. an auditor's report on financial statements

which is intended for general use. An audit report or certificate for special purpose is one to

which the format of general purpose audit report is not applicable.

1.2 This note is intended to provide guidance to members who way be called upon to give audit

reports or certificates for special purposes (herein referred to as 'reporting auditors'). Reports on

profit and/or financial forecasts and on tax audit do not fall within the scope of this guidance

note.*

2. Scope of Special Purpose Audit Reports and Certificates

2.1 Audit reports or certificates for special purposes may be issued in connection with:

a. financial statements which are prepared in addition to general purpose financial

statements;

b. specified elements, accounts or items of a financial statement;

c. compliance with requirements of any agreement or statute or regulation;

d. financial information given in special purpose formats or schedules;

e. compilation of statistics or ascertainment of basic figures e.g., for the purpose of fixing

quotas or levies.

2.2 A reporting ' auditor Should appreciate the difference between the terms certificate' and

'report'. A certificate is a written confirmation of the accuracy of the facts stated therein and does

not involve any estimate or opinion. A report, on the other hand, is a formal statement usually

made after an enquiry, examination or review of specified matters under report and includes the

reporting auditor's opinion thereon. Thus, when a reporting auditor issues a certificate, he is

responsible for the factual accuracy of what is stated therein. On the other hand, when a reporting

auditor gives a report, he is responsible for ensuring that the report is based on factual data, that

his opinion is in due accordance with facts, and that it is arrived at by the application of due care

and skill.

3. Responsibility for Preparation of Special Purpose Statements

The primary responsibility for the contents of a special purpose statement rests with the

enterprise and this would be evidenced by a suitable declaration or authentication by the

management on the face of the statement.

Answer 2

Audit is the name of the process or department while auditor is the person who conducts the audit process.