{"id":26685,"date":"2019-11-16T18:32:47","date_gmt":"2019-11-16T13:02:47","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=26685"},"modified":"2023-05-24T15:04:15","modified_gmt":"2023-05-24T09:34:15","slug":"audit-report-format-for-nbfc","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/audit-report-format-for-nbfc\/","title":{"rendered":"Audit Report Format for NBFC"},"content":{"rendered":"<p class=\"has-drop-cap\">The audit report of the company is a key deliverable which shows the end results of the entire audit process. The decisions and plans of the Investors, Lenders, Customers, and others who are also the users of the financial statement are based on the Audit reports of the Company. The <strong>Audit report <\/strong>is a written report from the Auditor of the Company which contains the opinion that whether a Company&rsquo;s financial statement comply with GAAP (Generally Accepted <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Accounting&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Accounting is the language of business, serving as the backbone of financial management and decision-making. It involves the systematic recording, analysis, and reporting of financial(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/accounting\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>Accounting<\/a> Principal. In this article, we are going to discuss an audit report format for <strong><a href=\"https:\/\/enterslice.com\/nbfc-registration\"><a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;NBFC&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Non-Banking Financial Companies (NBFC) operate similarly to banks but do not possess the legal status of a bank. Registered under the Companies Act 2013 and governed by the RBI Act&amp;#039;s section(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/nbfc\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>NBFC<\/a><\/a><\/strong>. <\/p>\n\n\n\n<p>The\nauditor of the Company should be careful while issuing the Audit Report as\nthere are a large number of people placing trust on the Audit Report and which\nhelps them in taking decisions accordingly. The report should be issued by\nbeing unbiased and objective in discharging the functions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Significance\nof the Audit Report for the NBFC<\/strong><\/h2>\n\n\n\n<p>The Audit Report is not an analysis of the Company&rsquo;s performance, but the report reflects a measure of the reliability of the <strong>Financial Statements<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Financial_statement\"><strong>[1]<\/strong><\/a><\/sup>. The key significance of the Audit Report: <\/p>\n\n\n\n<ul><li>The auditor&rsquo;s report is a document <strong>prepared by the Auditor <\/strong>which contains the auditor&rsquo;s opinion of whether a company&rsquo;s financial statements comply with GAAP or not.<\/li><li>The Investor of the company&rsquo;s i.e. <strong>Banks<\/strong>, creditors, and also the regulators require an audit of a company&rsquo;s financial statements.<\/li><li>An unqualified or clean audit report means a company has followed accounting standards while a qualified report or Unclean report means there might be errors in the Audit report as well as Compliances.<\/li><li>Additionally, an adverse report means that the financial statements might have discrepancies and errors and also the company didn&rsquo;t adhere to GAAP.<\/li><\/ul>\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/enterslice.com\/learning\/statutory-audit-checklist-for-nbfcs-complete-overview\/\">Statutory Audit Checklist for NBFCs &ndash; Complete Overview<\/a><\/mark><\/p>\n\n\n\n<div class=\"mt-2 mb-3 inner-add-form-blog\">\n\t\t\t\t\t\t\t \t<div class=\"row align-content-center\" style=\"align-items: center;\">\n\t\t\t\t\t\t\t\t \t<div class=\"col-xs-12 col-sm-12 col-md-12 col-lg-4\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"enterslice-logo-form\">\n\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" class=\"w-100\" src=\"https:\/\/s3.amazonaws.com\/myamcatimages\/company\/images\/5220.png\" alt=\"logo enterslice\"\/>\n\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"col-xs-12 col-sm-12 col-md-12 col-lg-8\">\n\t\t\t\t\t\t\t\t\t\t<h2>NBFC Registration<\/h2>\n\t\t\t\t\t\t\t\t\t\t<ul class=\"check-none\">\n\t\t\t\t\t\t\t\t\t\t\t<li>Legal Advisory for NBFC<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li>Audit Support Services<\/li>\n                                            <li>Go to <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Market&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;A market is a structured environment, either physical or virtual, where buyers and sellers convene to trade goods and services. This trading hub operates based on the principles of supply and(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/market\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>Market<\/a> Strategy<\/li>\n\t\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/enterslice.com\/nbfc-registration\" class=\"btn-learn-more\">Learn More<\/a>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t <\/div>\n\t\t\t\t\t\t\t <\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Format of\nan Audit Report for NBFC<\/strong><\/h2>\n\n\n\n<p>The basic format\nof an Audit report on auditing as prescribed by the Standards is as follows-<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>\n  <strong>Heading <\/strong>\n  <\/td><td>\n  <strong>Description<\/strong>\n  <\/td><\/tr><tr><td>\n  <strong>Title<\/strong>\n  <\/td><td>   Title shall clearly mention that the report is an Independent Auditor&rsquo;s Report.   <\/td><\/tr><tr><td>\n  <strong>Addressee<\/strong>\n  <\/td><td>   Should mention clearly as to whom the report is being given. i.e. if the Members   Mentions that it is the Management&rsquo;s responsibility to prepare the Financial   Statements, it should be clearly mentioned in the Audit report.   <\/td><\/tr><tr><td>\n  <strong>Report <\/strong>\n  <\/td><td>   The report contains the details of the audit accompanied by the Financial statement which comprises of the Balance sheet, P&amp;L and the Cash flow statement of the respective year and also the summary of the significant <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Accounting Policies&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Accounting policies are regulations or guidelines that businesses must follow when creating and presenting their financial statements. They establish a consistent framework for producing(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/accounting-policies\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>accounting policies<\/a>.   <\/td><\/tr><tr><td>\n  <strong>Management&rsquo;s\n  Responsibility for Financial Statements<\/strong>\n  <\/td><td>   Under MRFS, the management uses its best judgement to ensure that the statement reflects fairly the consolidated financial position, results of operations.   <\/td><\/tr><tr><td>\n  <strong>Auditor&rsquo;s\n  Responsibility<\/strong>\n  <\/td><td>   Under   Auditor&rsquo;s Responsibility, it is required to mention that the responsibility of the   Auditor is to express an unbiased opinion on the financial statements and issue an audit report.   <\/td><\/tr><tr><td>\n  <strong>Opinion<\/strong>\n  <\/td><td>   The Auditor should mention the overall impression obtained from the audit of financial statements.<br>   For example Modified Opinion, Unmodified Opinion.   <\/td><\/tr><tr><td>\n  <strong><a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Basis&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;In finance, the &amp;quot;basis&amp;quot; is a term with several applications, including representing the difference between the spot price and the future contract price of an asset, which is vital in investment(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/basis\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>Basis<\/a> of the Opinion<\/strong>\n  <\/td><td>   State the basis on which the opinion as reported has been formed. Facts of the basis should be clearly mentioned in the Audit report.   <\/td><\/tr><tr><td>   <strong>Reporting   Responsibility other than above-mentioned key points<\/strong>   <\/td><td>   In case of any other reporting responsibility exists, i.e. Report on Legal or Regulatory requirements the same should be mentioned in the Audit report.<br>   <br>      <\/td><\/tr><tr><td>\n  <strong>Signature of the\n  Auditor<\/strong>\n  <\/td><td>\n  The Auditor of the\n  Company shall sign the Audit Report.\n  <\/td><\/tr><tr><td>\n  <strong>Place of Sign by the\n  Auditor<\/strong>\n  <\/td><td>   The city in which the Audit Report is signed.   <\/td><\/tr><tr><td>   The date<strong> on which the Audit   Report is signed<\/strong>   <\/td><td>   The date on which the Audit   Report is signed.   <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n<a href=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/11\/NBFC-Audit-Report-Format.pdf\" class=\"pdfemb-viewer\" style=\"width: 767px; \" data-width=\"767\" data-height=\"max\" data-toolbar=\"bottom\" data-toolbar-fixed=\"on\">NBFC-Audit-Report-Format<br><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The audit report of the company is a key deliverable which shows the end results of the entire audit process. The decisions and plans of the Investors, Lenders, Customers, and others who are also the users of the financial statement are based on the Audit reports of the Company. The Audit report is a written [&hellip;]<\/p>\n","protected":false},"author":25,"featured_media":26686,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[6],"tags":[2818,2817],"acf":{"service_id":"49"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Audit Report Format for NBFC (Non-banking Finance Company)<\/title>\n<meta name=\"description\" content=\"The Audit Report Format for NBFC is a key deliverable which shows the end results of the entire audit process. 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Also, she has practical experience of almost 1.5 years in Legal compliance and secretarial work.","postViews":525,"readingTime":3,"nextPost":{"id":26696,"slug":"everything-you-need-to-know-about-business-risk-management"},"prevPost":{"id":26674,"slug":"what-is-the-tax-residency-certificate-how-to-get-it"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/11\/Audit-Report-Format-for-NBFC.jpg","postTerms":"NBFC","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/26685"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/25"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=26685"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/26685\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/26686"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=26685"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=26685"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=26685"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}