Long-form report definition
/What is a Long-Form Report?
A long-form report is an expanded form of audit report that is issued by an external auditor. The content of this report includes the following:
The audit scope
The auditors' opinion regarding the financial statements of the client
The key risks identified and how the auditors responded to those risks
The percentage change in accounts
An evaluation of the financial status of the client. This can include a detailed commentary on a client’s financial performance, financial position, and key ratios. The auditor may analyze trends in profitability, liquidity, solvency, and working capital management, offering insight into the underlying financial health of the business.
Recommendations for improving financial systems. This can be a particularly important part of the report, since it informs the client about possible control enhancements that can be implemented. The auditor may also suggest a variety of operational best practices, though the auditor’s main focus is on the robustness of the underlying control systems.
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FAQs
How does a long-form report differ from a standard audit report?
A standard audit report provides a concise opinion on whether the financial statements are presented fairly, in all material respects. A long-form report expands beyond the opinion to include detailed explanations of audit scope, procedures, findings, and observations. It is designed to inform governance and oversight rather than to serve as a public-facing assurance document.