AAuditPro Suite· User Manual
Manual home Phase 12 · Draft the Auditor's Report
ISA 700 — Forming an Opinion ISA 701 — Communicating KAM ISA 705 — Modifications ISA 706 — EOM & OM paragraphs

The 4 opinion types (ISA 705)

1Unmodified (clean)
Default · 90% of audits

FS give a true and fair view in all material respects. Nothing to qualify.

2Qualified — "Except for"
Material misstatement / scope limitation but not pervasive

"Except for the matter described in the basis…" — used when one specific issue is material but the rest of the FS is fine.

3Adverse
Material AND pervasive

"In our opinion, because of the significance of the matter…" — FS do NOT give a true and fair view.

4Disclaimer
Unable to obtain sufficient evidence

"We do not express an opinion…" — auditor couldn't gather enough evidence to form a conclusion.

The standard report structure (ISA 700)

#SectionWhat goes here
1Title"Independent Auditor's Report"
2AddresseeTo the Shareholders of [Entity Legal Name]
3OpinionThe four-line opinion paragraph (clean / qualified / adverse / disclaimer)
4Basis for opinion"We conducted our audit in accordance with ISAs… we are independent… we believe sufficient evidence…"
5KAM (if listed)Per ISA 701 — only listed entities. 1–4 matters most significant in the partner's judgement.
6Going concernMaterial uncertainty paragraph if applicable (ISA 570)
7Other informationDirector's report etc. — auditor's responsibility (ISA 720)
8Management's responsibilitiesStandard wording per ISA 700
9Auditor's responsibilitiesStandard wording (~½ page)
10Report on legal & regulatory requirementsOman-specific: legal-reserve compliance, books of account proper, etc.
11Engagement partner nameISA 700.45 (listed) — name of partner who signed
12SignatureFirm name + partner signature
13Auditor's addressMuscat, Sultanate of Oman
14Date of reportSame date as final EQCR sign-off (or partner sign-off if no EQCR)

Step-by-step

  1. Open Audit Report editor

    From the job → Audit Report tab. The system auto-generates a draft based on engagement profile (standard / listed / SME). Sections 4, 7, 8, 9 (boilerplate) are pre-filled with firm-vetted wording.

  2. Pick the opinion type

    Default: unmodified. If you have unresolved AJEs above materiality, the system suggests qualified. The reasoning is captured in the basis-for-opinion paragraph automatically.

  3. Draft the opinion paragraph

    Pre-templated wording matched to the opinion type. The entity legal name + audit period auto-merge from the engagement.

  4. Add KAM if listed

    For listed entities → click Add KAM. Pick from the firm's KAM library or write fresh. Standard format: title + why it's a KAM + how we addressed it. 1–4 KAMs typical.

  5. Going-concern paragraph

    If K-100 Going Concern flagged a material uncertainty → the system auto-inserts the ISA 570 paragraph + cross-references the FS note. Partner reviews + edits.

  6. Legal & regulatory section

    Oman-specific block. Auto-checks: legal-reserve compliance (CCL Art. 132), books-of-account properly maintained, authorisation of dividends. Each item ticks or flags.

  7. Preview the PDF

    Click Preview. Branded firm letterhead, partner block, signature placeholder. 3–5 pages. Reviewer of the report (typically 2nd partner or quality reviewer) clears.

  8. Generate signed PDF

    Once the wording is final and partner is ready, click Generate signed PDF. Partner's stored signature image is rendered + audit-trail entry created. PDF is filed as Audit-Report-{ClientCode}-{FY}.pdf.

The opinion paragraph in practice

Opinion

We have audited the financial statements of Al-Bahja Trading LLC ("the Company"), which comprise the statement of financial position as at 31 December 2025, and the statement of profit or loss, statement of changes in equity, and statement of cash flows for the year then ended, and notes, comprising significant accounting policies and other explanatory information.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at 31 December 2025, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs) and comply with the Commercial Companies Law of the Sultanate of Oman.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the International Code of Ethics for Professional Accountants…

KAM template — worked example

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.


Revenue recognition (Note 6)

Why a key audit matter: Revenue is the largest single figure in the financial statements (OMR 2,450,000) and the entity has multiple revenue streams with varying recognition triggers under IFRS 15.

How our audit addressed the matter: We tested a sample of 50 contracts across the major revenue streams, traced revenue recognition timing to delivery / acceptance documentation, recomputed the contractual transaction price, and tested cut-off using sales recorded 5 days before and after year-end. Findings were presented to management; no exceptions noted.

Try this

On a clean (unmodified) audit job, click Audit Report. Watch the auto-draft populate sections 1, 2, 4, 7, 8, 9 instantly. Edit section 3 (Opinion) — the entity name + period merge live. Click Preview PDF. The 3-page deliverable is ready in < 2 seconds.

Watch out

Never publish a draft PDF — the system marks drafts with a "DRAFT — DO NOT DISTRIBUTE" watermark to prevent accidental release. Once partner signs the final, the watermark is removed. Distribute only the signed final.

Tip — KAM library

Build a firm-wide KAM library over time — revenue, going concern, related-party valuation, leases under IFRS 16, ECL on long-dated receivables. Future engagements pick from the library + customise. Saves drafting hours and ensures consistency across the firm.

What's next

Report drafted, opinion finalised, partner ready to sign. Final phase: sign + issue + lock the file + archive to the SHA-256 verified 7-year vault. Phase 13 closes the engagement.