Audit Report vs. No Audit Report

Kinetic^

Just leading on from the thread earlier about needing an audit report I feel that the difference needs to be explained and probably stickied as there's always people on looking for this to be done(including this very site). However people generally get scared away at the increased cost of an audit report. Kluivert, I've done this much........now you can explain

Why is there such an increase in cost to have an audit report?

In order to obtain an audit report, your books and records need to be audited. This takes longer than just preparing a set off accounts. There's more in depth work that needs to be carried out so that your auditor knows that when he signs off the audit report, it's all kosher. The fact that it's your auditor's name going onto the report also increase the cost.......he's giving a stamp of approval that these are alright as they could be sent to a bank to acquire a loan (ask Stepbar, he'll hook you up ) and if they're wrong then the auditor could be held liable and subsequently struck off.

This is not a dig at the poster in the thread earlier, I'm just making a point - when someone says it's a small job, you don't really know the extensive work that has to go into covering your back and also covering our own. Auditor's need to be sure the information provided and then processed is correct as they can't sit behind a company name, it's their name and neck on the line if it's wrong.

MartMax

Just to add few more words. Auditors express opinion on the financial statements. Opinion of which others relying on.

Indeed, doing the work to sign a report costs time and resources.