International Standard on Auditing - ISA Summary
It is important for small bussinesses owners to understand how auditors carried out tests on theirs financial records and internal control systems before expressing theirs opinions on the financial statements.
There are two main types of auditors reports - Qualified report and unqualified report.
Qualified report is issued when the auditors have disagreement and found that the financial statements are materially misstated. Generally, no businesses like to be issued with this report.
Unqualified report is issued when the auditors are satisfied that the clients financial statements are free from material errors and give a true and fair view.