Audit report is the most legally binding report issued by certified public accountants after performing the audit procedures stipulated in the auditing standards according to the agreement. For example, the audit of listed companies, national financial institutions and other units with high social credibility requirements must issue audit reports. Audit report is a report that auditors check the company's accounts and verify whether the accounts are consistent, which is suitable for small enterprises.
Legal basis: Article 164 of the Company Law of People's Republic of China (PRC), a company shall make financial and accounting reports at the end of each fiscal year, which shall be audited by an accounting firm according to law. Financial and accounting reports shall be prepared in accordance with laws, administrative regulations and the provisions of the financial department of the State Council.