CONCEPT AND NEED FOR ASSURANCE

1. Cooper Warehouses (Pvt.) Limited has appointed Mr. Alex, CPA, as the first auditor. Mr.

Alex was a director in Wally Cones Limited which was the parent of Wenny Fabrics Limited,

which in turn was the parent of Cooper Warehouses (Pvt.) Limited. Mr. Alex retired as the

director 6 months ago.

2 .Kamran Spinning Mills Limited, whose one of the directors is ex-wife of a partner of Umar &

Company, Chartered Accountants.

2. After seventy days of incorporation, the directors of Rahman Limited (RL) decided to

appoint Mr. Shahid as the company’s statutory auditor. Mr. Shahid was employed by RL

before he started his own practice.

3. The directors of Najam (Pvt.) Limited having paid-up capital of Rs. 4.5 million have

appointed Mr. Dawood to act as the external auditor of the company. Mr. Dawood has

been awarded a diploma in International Financial Reporting Standards by the Institute of

Chartered Accountants of Pakistan and has completed the mandatory period of training

from a leading firm of chartered accountants.

4. Apricot and Company, Chartered Accountants, have received an offer for appointment as

auditor of Banana Limited. Mr. Pumpkin who is a nominee director of the Government on

the Board of Directors of Banana Limited holds 25% shares in Water Melon Limited. The

spouse of a partner also holds shares in Water Melon Limited.