what is audit report?

[alenaghose]

I’ve come across the term “audit report” in some financial documents, and I’m not entirely sure what it means. Can someone explain what an audit report is, what it includes, and why it’s important? Thanks in advance for any insights!

 

[Samuel]

An audit report is a formal, written opinion by an independent auditor on an organization's financial statements, confirming their accuracy, completeness, and adherence to accounting standards like GAAP. It provides stakeholders—such as investors, creditors, and regulators—with a reliable assessment of the company's financial health and helps them make informed decisions, thereby promoting transparency and accountability.