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Audit Report: Definition, Functions, Types, & Examples

audit report


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Audit is an activity that must be carried out by every company. Through this activity, an audit report will be produced.

The audit report is the final result of the audit process by a company that has been running a business for a certain period of time and helps in decision making.

The audit process itself is divided into two steps, namely internal and external. Internal audit means the process is done with the same business actors, while externally it is done by the government.

Both processes will produce an audit report that is very useful for the company to sustain its business.

Simply put, an audit report is a snapshot of a company's financial performance during a particular financial year.

Before you make the final report of the audit process, please refer to the discussion below about the functions, types, and examples in the company!

What is an Audit Report?

ilustrasi laporan audit perusahaan
Illustration of a company audit report (

An audit report is a document that discusses the auditor's opinion on the company's financial performance within a certain time or period.

The opinion includes an assessment of whether or not the company has complied with all applicable financial reporting regulations.

The company's financial statements include the balance sheet, profit and loss, and others. All of this must be seen whether it is in accordance with accounting principles in Indonesia or not.

These principles are in the form of Accounting and Financial Standards Regulations (PSAK) which form the basis of the company's audit reporting rules.

Generally, this report contains various descriptions of auditor role, management, scope, and audit opinion.

If the report issued by the auditor is clean, it means that the company's finances have fully complied with accounting standards.

This report is very important for companies because it is closely related to the sustainability of their business. This is because investors will rely on the audit report to assess the company's financial health.

Audit Report Function

You need to know, if this report is very important for the reputation and image of the company. This is because investors will invest if the company's financial statements are healthy and in accordance with accounting principles.

Therefore, there are several functions of an audit report that you need to know:

1. Help assess the completeness and accuracy of corporate tax reports for the government.

2. Assessing management integrity on the transparency of the company's financial statements.

3. Minimize audit results from misunderstandings.

4. Assist decision making for the company in the future.

5. Build positive relationships for the company with investors.

6. As material for investor analysis before making an investment.

Type of Audit Report

There are several types of reports to understand, especially if you're an auditor. Here are four types of audit reports:

1. Unqualified opinion (Unqualified opinion)

First, there are unqualified opinion or an unqualified opinion, also known as a clean opinion. This type of auditor's opinion states that any financial records provided are free from error.

This type of report is what all companies expect because it does not violate accounting principles. Through this unqualified opinion, the company's financial statements do not have any negative comments.

This means that the auditor is satisfied with the company's financial statements and believes that its operations are in accordance with the applicable legal basis.

2. Qualified opinion (Unqualified opinion)

During the audit process, the auditor found information that the company's financial records were not prepared in accordance with accounting principles. However, there were no errors in terms of presentation.

It is this kind of event that makes the auditor issue an unqualified opinion or a qualified opinion.

3. Adverse opinion (Unfair opinion)

It is not impossible if the financial statements issued by the company are very bad and not in accordance with accounting principles and the applicable legal basis.

In fact, it is possible that the company's finances in that period are very misunderstood and unacceptable to auditors and investors.

Through this case, the auditor will issue an unqualified opinion or adverse opinion terhadap catatan keuangan perusahaan.

If this happens, it is very detrimental to the company and investors will refuse to cooperate.

4. Disclaimer of opinion (No opinion)

Finally, this type of audit report means that the auditor cannot complete the audit process accurately. This can happen for several reasons, one of which is not having the appropriate financial records.

In addition, the company may restrict the auditor from conducting a full audit of the financial records. 

In fact, it could also be that the company does not provide a complete explanation regarding the statement given by the auditor.

When this occurs, the auditor chooses not to provide an opinion or disclaimer of opinion anything related to the company's financial statements.

Sample Internal Audit Report

Now that you understand the above information about audit reports, it's time to find out how they work.

Well, here are some examples of internal audit reports:

1. Example of an internal audit report in the form of a letter or memorandum




Subject: Audit Report


Dear Sir.


Opening Paragraph

Basis for conducting the audit, identification of the audit, objectives or goals, scope, audit methodology, statement that the audit was conducted in accordance with applicable standards. Statement of audit limitations (if any)

Paragraph Contents

Audit results in the form of conclusions, audit findings, recommendations, and responses from the responsible audit officer. Reporting of confidential information (if any)

Closing Paragraph

Audit Responsible Position





2. Sample audit report in chapter form




Internal audits are conducted on the basis of instructions from quality management to control the quality assurance mechanism, both at the input stage of the process and the results.


Improving Puskesmas X services in order to assist MCH officers to carry out their duties according to their competencies and activities. In addition, it also aims to improve the performance of all staff at Puskesmas X.


The scope of the internal audit to be conducted is Posyandu X (KIA).


Documentation in the process of activities carried out at Posyandu X (KIA).


The audit standards and criteria used are based on the provisions of the legal basis applicable to Posyandu.


Coordinator: Muhammad Hashim


1. Rasyid

2. Hilman


The internal audit activity process will be carried out on Monday, April 17-28, 2023 at the Puskesmas X hall from 08.00 - 12.00 WIB. Based on the results of the quality management team meeting, it is determined regarding the audit implementation schedule, namely the date, unit, and auditor coordinator.

The auditor coordinator forms a small team to carry out the audit. The next day, the audit team makes a plan in the form of work unit or target, process or activity, standard or criteria, date and time of audit I & II, and place of implementation.

In addition, it must also determine the audit instrument, namely the criteria, questionnaire, facts in the field, findings, recommendations, and time to complete.

Well, that's a complete discussion of what an audit report is along with its functions, types, and examples. Basically, an audit report is the final result of the audit process which serves to determine the company's financial performance in a certain period.

When viewed through the types and examples of company audit reports above, it looks quite complicated and must require accuracy so that there is no misunderstanding.

Nevertheless, you no longer need to worry because you can utilize Internal Audit Software from Audithink. Guaranteed, your company's internal audit process will be faster, more accurate and precise.

How, are you interested in using it? If so, please do so immediately request demo to us to find out the ease of the company's audit process.

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