American Geographer Jared Diamond once described human beings’ most prominent distinction among other animals—the ability to make accurate, sensible, and clear-cut decisions. For this difference, humans can understand the concept of business, trade, and exchanges better, while making innovations for the betterment of society. With that, people take on various challenges to strengthen their skills—like starting a logistics firm or business. To measure the success of the venture, the logistics company acquires the help of a third-party auditor to avoid biases. The audit report from the accountants will be one of the bases for the enterprises’ business decisions and plans.
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What is the Logistics Audit Report?
An audit report is the interpreted data taken from a company’s financial statements that a third-party entity compiled. The material can either be an external or internal audit, depending on the preference of the company. Knowing the financial status of the business ensures preparation for future problems and unpredictable dips in the economic market. Moreover, an unbiased report concluded by an outside party holds a better view of the business compared to an employee with which partiality may affect the results.
On the other hand, a logistics audit report has the same format but with a specified purpose. The focus of the report is solely the status of the logistics company, including the warehouse inspection records, risk management assessments, and inventory documents. Furthermore, a logistics audit report also contains data for better logistics planning and marketing as it analyzes the overall performance of the company.
Disclosing the Types of a Report
Unlike what most people assume, an audit report actually has four types. But before getting into the four types, you have to know the purpose of Generally Accepted Accounting Principles (GAAP) and its effects on auditing reports. The GAAP has the list of all policies and standards set for the reporting processes for auditing. Thus, institutions have to pass the GAAP for their financial information.
An unqualified opinion, the first and most common type of audit report, comes from another auditor’s assessment of the whole financial situation of the company through the qualifications of GAAP. On the other hand, the qualified opinion presents the financial information of the business but with some exemptions. Despite some withheld information, this type of audit report is still acceptable among bankers, creditors, and stockholders. Adverse opinion, the third type, is an auditor’s professional take on errors and miscalculations with the data presented to show the financial state of the company. If the statements do not reflect the current status of the company, then the auditor will use this type of report. Disclaimer of opinion, the last type, is when the auditor refrains from providing a view on the finances of the business. For instance, if the auditor has no access to essential financial information, then the accountant cannot create a well-informed opinion. When the company hires an auditor for its financial report, it has to provide enough details.
6+ Logistics Audit Report Templates in PDF | MS Word
1. Logistics Audit Financial Report Template
2. Logistics Audit Report Format
3. Logistics Audit Report Example
4. Logistics Internal Audit Report Template
5. Logistics Audit Report Sample
6. Logistics Audit Report in PDF
7. Standard Logistics Audit Report
How to Make Professional a Logistics Audit Report Template
Most audit reports have three paragraphs. The opening focuses on the responsibilities of the two parties—the logistics company and auditor. The second part includes the auditor’s work, the extent of his or her assessment. In this portion, the auditor lists the required financial statements to use for the evaluation. After that, the bottom part contains the opinion of the auditor. For logistics audit reports, logisticians still continue with these procedures.
Step 1: Gather Data from Other Assessments
When creating a template for the logistics audit report, you should list down a few things. For one, you have to know the different business ventures of the logistics company. Freight transportation, trucking delivery, and shipping services are some of the activities that a logistics company covers. With that, you should provide enough space for the data from other assessments in the services offered by the business. By having an organized list, analyzation will be an easier task.
Step 2: Analyze the Data Provided
After having the data from the different departments of the logistics business, the auditors need to analyze the numbers. The statistics will help in determining the current financial condition of the enterprise. With this knowledge, the auditor can come up with an effective way to improve the finances of the company. Accountants can contribute methods for the development of that area. Although the logistics business doesn’t have to follow the suggestion immediately, it’s an option they can take.
Step 3: Identify Problematic Areas
Through the data from the assessment, identifying the problems in the business becomes more effortless. When the auditor notices the discrepancies in the number of shipments and revenue returns, you can check the records and escalate the situation. If the numbers don’t match with the presented receipts and documents, there should be an inspection. Misinterpreted data is equivalent to losses, so be wary about it.
Step 4: Determine Best Practices for the Company
By discovering the questionable areas in the business, the next step is to make changes. So, the auditor can make suggestions for the best practices that would help in improving the numbers in the company. The auditors proposed business plans will be reliant on the needs of the logistics company. Moreover, the enterprise can choose to follow or ignore the proposal.
Step 5: Develop a Suitable Plan for the Enterprise
Auditors provide assessments and reports to the company, but they can also extend their skills. Some auditors offer suitable plan samples that the logistics company can use for the improvement of their business. Since auditors have an overview of the status of the company, they have a better understanding of what the company lacks. Whether these plans can coincide with the goals of the company or not, it’s an opportunity for the business.
An outside, unbiased perspective is essential for business assessments. Through this procedure, the logistics company can see another view—a new insightful way of looking at the state of the business. Consequently, logistics audit reports created by third-party accountants have an impact on the future decisions of the organization.