In Bangladesh a company's audit report follows International Standards on Auditing (ISA), and the auditor's opinion comes first: whether the financial statements give a true and fair view. It is followed by the basis for opinion, any emphasis paragraphs, the responsibilities of management and the auditor, comments required by company law, and finally the firm's name, signature, date and DVC.
The parts and their order are largely fixed by the auditing standards. The structure below is for a typical private limited company. Wording varies slightly between firms, but the parts are the same. This is an illustrative structure, not any real company's report.
On this page
The parts of the report, in order
| Part | What it contains | What the reader should check |
|---|---|---|
| Title and addressee | Independent Auditor's Report; to the Shareholders of [Company] Limited | The report is addressed to shareholders, not management |
| Opinion | Which statements for which year were audited, and whether they give a true and fair view under IFRS | The most important paragraph; "except for", "do not present fairly" or "we do not express" are warning signs |
| Basis for Opinion | The standards followed and the auditor's independence | If the opinion is modified, the reason is here |
| Emphasis of Matter / Other Matter | Draws attention to something without changing the opinion (e.g. going concern uncertainty, major litigation) | Read carefully if present |
| Key Audit Matters | Mandatory for listed companies: the most significant audit areas | Usually absent for private companies |
| Responsibilities of Management | Management is responsible for preparing the statements | Auditors check statements; they do not prepare them |
| Auditor's Responsibilities | What was done to obtain reasonable assurance | An audit does not guarantee every fraud is found |
| Report on Other Legal and Regulatory Requirements | Companies Act 1994 matters: whether information was obtained, books properly kept and statements agree with the books | Note any negative comment here |
| Signature, firm, date, place | Partner's name and enrolment number, firm name | Is the firm ICAB-registered and the partner's number shown? |
| DVC | ICAB Document Verification Code | Verify the report online with the code |
The four types of opinion
Banks and large buyers usually expect a clean opinion. A qualified opinion triggers questions about the reason. In our experience, the most common reasons at SMEs are: no proof that share capital was deposited through the bank, books that do not reconcile with bank statements, or VAT returns not available to verify sales.
| Type | Words in the report | Meaning |
|---|---|---|
| Unmodified (clean) | present fairly, in all material respects | The statements are fine overall |
| Qualified | except for the effects of… | Fine except for one specific matter, explained in the basis paragraph |
| Adverse | do not present fairly | The statements are wrong overall |
| Disclaimer | we do not express an opinion | Not enough evidence to form an opinion |
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Sample: structure of the opinion paragraph
We have audited the financial statements of [Company] Limited, which comprise the statement of financial position as at [30 June 20XX], and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at [30 June 20XX], and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs).
What comes with the report
- Cover and contents
- Statement of financial position, statement of profit or loss and OCI, statement of changes in equity, statement of cash flows
- Accounting policies and detailed notes
- Fixed asset schedule (often as an annexure)
- Separately: the auditor's management letter, which is for management and not usually for outside readers
Keeping your company's report clean
Most reasons for a qualified opinion can be fixed long before the audit: bank reconciliations, proof of capital deposits, VAT returns that match sales, a fixed asset register and a stock count. See audit preparation and the free audit document checklist.
Frequently asked questions
How do I check an audit report is genuine?
Enter the report's DVC in ICAB's online verification system. Also check that the firm is ICAB-registered and the signing partner's enrolment number matches.
Is the management letter part of the audit report?
No. The management letter is a separate letter in which the auditor sets out control weaknesses and recommendations. It does not change the opinion, but next year the auditor checks whether the findings were fixed.
Is a proprietorship's audit report the same?
The structure is similar, but there is no company law section and the report is addressed to the owner. See proprietorship final accounts.
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Related pages
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Trial balance clean-up, reconciliations, confirmations, schedules and every audit document.
ServicesAudited accounts with DVC for bank loans
Audited statements with DVC for a loan, renewal or higher limit, from books to audit.
ServicesFinal accounts preparation
Balance sheet, income statement, cash flows, notes and fixed asset schedule.
Large companiesFinal accounts for multiple group companies
Statements, notes, schedules and deferred tax for every group company in one format.
Written by the EOMS Hisab accounts team. Last reviewed: . Bangladesh rules change with each Finance Act, SRO and circular. Check rates and thresholds against the latest official source before relying on them.