An audit report is a document issued by an auditor after reviewing a company’s financial statements. The report shows whether the company’s financial records are accurate and comply with accounting standards.
In most cases, auditors issue four main types of audit reports.

1. Unqualified Audit Report
An Unqualified Audit Report means the auditor believes that the company’s financial statements are accurate and fairly presented.
This is the best result a company can receive from an audit.
It indicates that:
- The financial statements follow proper accounting standards
- The records are complete and reliable
- There are no significant issues found during the audit
Most well-managed companies aim to receive this type of audit opinion.
2. Qualified Audit Report
A Qualified Audit Report means the financial statements are mostly correct, but there are some specific issues.
The auditor may point out certain areas where:
- Information is incomplete
- Some accounting rules were not fully followed
- Certain records could not be verified
However, these issues are not serious enough to affect the entire financial statement.
3. Adverse Audit Report
An Adverse Audit Report means the auditor believes that the company’s financial statements are not accurate or misleading.
This is a serious issue and may indicate:
- Major accounting errors
- Incorrect financial reporting
- Possible mismanagement
When a company receives an adverse opinion, it may lose trust from investors, banks, or regulators.
4. Disclaimer of Opinion
A Disclaimer of Opinion means the auditor cannot give an opinion on the financial statements.
This usually happens when:
- The auditor does not have enough information
- Important financial records are missing
- The auditor cannot properly verify the company’s data
Because of this, the auditor cannot confirm whether the financial statements are accurate.
Need Help with Audit Reports?
Not sure how to understand your company’s audit report or audit requirements? We’re here to help.
Our team can guide you on audit preparation, financial documentation, and compliance with requirements set by Suruhanjaya Syarikat Malaysia (SSM).
Contact us today to make your audit and compliance process simple and hassle-free.
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What Are the 4 Types of Audit Reports?