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The auditor report in a company's annual report is often overlooked, but it's important to read it to understand the purpose, performance, scope, and limitations of an audit. A key takeaway is that the absence of evidence does not imply evidence of absence. This concept will be clarified with an example at the end of the video, specifically using the auditor report from Alphabet Inc (Google's parent company) audited by Ernst and Young (EY). The language used in auditor reports is generally consistent, so grasping how one report works will help in understanding others.
