The term certificate refers to a written confirmation of the accuracy of the facts stated therein and does not involve any estimate or opinion.
An Auditor’s certificate is a written confirmation of the accuracy of the facts relating to the accounts for a particular time or to a specific matter, which does not involve any estimate or opinion.
An auditor’s certificate represents that he has verified certain precise figures and is in a position to vouchsafe their accuracy as per an examination of documents and books of accounts.
Certification of the statutory report, certification of share transfer, certification of the value of imports and exports of a company, etc., are some of the examples of auditor’s certificates.
Form of Auditor’s Certificate
If the auditor is satisfied with the accuracy of the foregoing items, he should give his certificate in connection with the correctness of the prescribed items given in the statutory report.
The form of the auditor’s certificate is as follows:
| We, the undersigned, being the auditors of the company, hereby certify that so much of this report as related to the shares allotted, the cash received in respect of such shares, and the receipts and payments of the company are correct. Place and date Chartered Accountants |
Differences between Auditor’s Report and Certificate
| Points | Auditor’s report | Auditor’s certificate |
| 1. Nature | It is an expression of opinion about the account. | It is a confirmation of correctness and accuracy about some matters. |
| 2. Basis of audit | The report is based on assumptions and estimations. | The certificate is based on actual figures and facts. |
| 3. Criticism | There may be criticism about the report. | There is no scope for criticism about the certificate. |
| 4. Scope | The scope of the report is large. | Its scope is limited. |
| 5. Scope of advice | In the scope, there is a scope of giving constructive advice to the company. | No scope of constructive advice Exists in the case of a certificate. |
| 6. Time of issue | After the end of each accounting, the year report is mandatory. | A certificate is not mandatory every year. |
| 7. Liability of auditor | As a report is merely an opinion, if it is not correct, the auditor may not be held responsible. | In case of the wrong certificate, the auditor will be held responsible. |
