The process of audit is carried on to find out the errors or frauds in the books of accounts (if any). Audit report gives information about the errors and frauds committed while preparing the books of accounts whether knowingly or unknowingly. This is the main advantage of an audit report. The other advantages may be like true position of the company at the end of the year, helpful for shareholders etc.
Depends what context you are using. I deal in audits from a systems view point not an accountancy one, the audits I am involved in are based on Management Systems so I will use that context. There are thee types of audit you conduct for three different reasons. 1) Internal Audit (1st party): This is an audit that is carried out by your own company/business on its own systems. It is a measurement of if you are following your company/business procedures and process to achieve your company/business goal. The report will show if you are following the procedures/processes, if not why not, what you need to do to make sure they are followed or what changes are too be made to bring them into line with the current working practice, who is to implement the changes. It is a measurement to satisfy the continual improvement of your system. 2) Supplier Audit (2nd Party): This is an audit carried out on your Company/Business by another party on your management system, procedures anf processes as part of an assurance process. This is carried out by another party you supply goods or a service to. Your company/business would also carry out this type of audit on another who supply you. 3rd Party Audit: An example of this is a certification audit carried out by someone like BSI or Lloyds, who will audit your etire Management System initially the result being a certificate to show you have a working, competent system.
The Report itself will tell you your strengths, weaknesses and where you need to improve.
