The aim of this study is to appraise audit report and its impacts on the activities of business entities in Nigeria. The question is does the audit report have an impact on business forms and what are these impact (if any). For the purpose of this, relevant literature were reviewed ranging from text books, journal and different materials relating to audit report. Data were collected through primary and secondary sources, specifically questionnaire and documentation respectively. Tables and percentages were used in organizing and presenting the data collected. Data collected through questionnaires were analyzed and the result of the analysis led to our findings. In the findings it was discovered that audit reports do not have a 100% impact on the business entities because – the financial statements do not always satisfy the information needs of some of its users e.g the employers and that audit reports have impacts (negative or positive) on the activities of business entities, auditors are responsible to share holders rather than management. Recommendations were made based on the findings that apart from the value added statement, the employment report and a statement of money exchange with the government should be included on the financial statement and it is necessary for share holder to appoint independent auditors to examine these financial statement and testify its fairness and truthfulness.