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.