Auditor
Report
The auditor's
report is a formal opinion,
or disclaimer thereof,
issued by either an internal auditor or
an independentexternal auditor as a result of an internal or external audit or evaluation performed
on a legal entity or
subdivision thereof (called an "auditee"). The report is subsequently
provided to a "user" (such as an individual, a group of persons, a company,
a government, or even the general public, among others) as an assurance service in order for the user to make
decisions based on the results of the audit.
An auditor's report is considered an
essential tool when reporting financial information to users, particularly in
business. Since many third-party users prefer, or even require financial
information to be certified by an independent external auditor, many auditees
rely on auditor reports to certify their information in order to attract
investors, obtain loans, and improve public appearance. Some have even stated
that financial information without an auditor's report is "essentially
worthless" for investing purposes.
Parts of a Standard Unqualified Audit Report
The seven parts of a standard unqualified audit report are the title,
addressee, introductory paragraph, scope paragraph, opinion paragraph, name of
auditor (CPA firm), and date of report. Following is a description of the
contents of each part.
1. Title - Public company reports are required
to begin with a title that references the "Independent Registered Public
Accounting Firm". Reports for nonpublic companies may contain titles such
as "Independent Auditors Report, or "Report of the Independent
Auditor".
2. Addressee - This is the individual, group,
entity, board of directors, and/or stockholders who retained the services of
the auditor.
3. Introductory Paragraph - This paragraph must state three
things: "which financial statements are covered by the report, that the
statements are the responsibility of management, and that the auditor has a
responsibility to express an opinion"
4. Scope Paragraph - This paragraph states what is
involved in the audit. For public companies the scope paragraph states that the
audit was performed in accordance with Public Company Accounting Oversight
Board (PCAOB) standards, and for nonpublic companies it states that the audit
was performed in accordance with generally accepted auditing standards (GAAS).
The scope paragraph must also state "that the audit provides only reasonable assurance that the
financial statements contain no material misstatements,...that an audit
involves an examination of evidence on a test basis,...
5. Opinion Paragraph - This paragraph expresses the
auditor's opinion in regard to the fairness of the financial statements based
upon evidence obtained through the audit.
6.
Name of Auditor - This is the name of the CPA firm
that conducted the audit, along with a manual or printed signature of the
auditor.
7. Date of Report - This is "the date on which the
auditor has completed all significant auditing procedures"
Kinds of Auditor Opinion
1.
Unqualified opinion
An unqualified audit opinion signifies that
auditors could find no noteworthy violations or misstatement in a company
financial info. This opinion is also referred as ‘clean opinion’. Normally,
this report is written by the auditors with reference to the company ability
for recording financial info as the applicable accounting standards. Besides,
the report might also include a pithy summary about the process of conducting
audit and the info that was reviewed.
2.
Unqualified Opinion With Explanatory Language
This opinion is given if there
are certain conditions that require an auditor to add an explanation (other
explanatory language) in the audit report, although it does not affect the
unqualified opinion expressed by the auditor.
3.
Qualified opinion
A qualified audit opinion implies that auditors
discovered issues in a company’s financial info. These issues are
involved in preventing the auditors from issuing a clean opinion on the company
operations.
4.
Adverse opinion
An adverse opinion is one of the two
radically negative audit reports. An adverse opinion signifies that the auditor
discovered significant material misstatements associated with financial
information. These misstatements generally refer to the financial statements
not conforming to the applicable accounting standards and that the info is
inaccurate and unreliable.
5.
Disclaimer opinion
A disclaimer audit opinion is the most awful
audit report that can be received by a company. The disclaimer letter is issued
by the auditor to specify that they are not able to form an opinion on the
company financial statements. This disclaimer opinion might occur as a result
when an auditor lacks independence from the client thus leading to the
inability of the auditor in forming a clear, third-party opinion on the company
financial info.
Bacground
PT. Nomura
Indonesia is a joint venture securities company established on Dec 11, 1989.
The scope of its activities comprises of brokerage, securities trading,
underwriting, investment management, and advisory services. The company is
located in Sentral Senayan Building, Jl. Asia Afrika, Jakarta, Indonesia.
Financial Statement
Purwantoro, Suherman & Surja
Independent Auditors’ Report
Report No. RPC-1228/PSS/2011
The Shareholders and Boards of Commissioners and
Directors
PT Nomura Indonesia
We have audited the
balance sheets of PT Nomura Indonesia (the “Company”) as of March 31, 2011 and
2010, and the related statements of income, changes in equity, and cash flows
for the years then ended. These financial statements are the responsibility of
the Company’s management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits
in accordance with auditing standars established by the Indonesian institute of
Certified Public Accountants. Those standars require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statements presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the
financial statements referred to above present fairly, in all material
respects, the financial position of PT Nomura Indonesia as of March 31, 2011
and 2010, and the results of its operations and its cash flows for the years
then ended in conformity with generally accepted accounting principles in
Indonesia.
