Long-form audit report
In one sentenceA detailed report the auditor provides in addition to his short-form report, explaining the items, the results of examining them and his findings in greater detail.
Simply put
The usual report gives an opinion in a few pages. The long-form report, however, explains the analysis of balances and how they changed, and the important findings for each item.
It is usually requested by owners, the board of directors or a lender wanting a deeper understanding, and is specified in the engagement letter.
Example
A group of partners owns a factory but does not run it themselves, so they asked the auditor for a long-form report analyzing inventory, receivables and their aging, and large expenses, alongside the opinion report.
Don't confuse it with
Management letterThe management letter focuses on control weaknesses and recommendations, while the long-form report explains the figures and items themselves.