Present fairly

Present fairly is a term used within the text of an audit report to indicate that the following concepts were in place at the entity under review:

  • The accounting principles applied by the firm are generally accepted
  • The accounting principles are appropriate under the circumstances encountered by the firm
  • The financial statements are reasonably informative about matters that may impact their use and interpretation
  • The financial statement information is reasonably classified and summarized
  • The financial statements reflect the underlying transactions within a range of acceptable limits

Consequently, using the term "present fairly" means that the financial statements attached to the auditor's report give a reasonable view of the financial results, financial position, and cash flows of the reporting entity.