INDIVIDUAL ASSIGNMENT

ANALYSIS OF AUDIT REPORTS OF PREMIER BANK

LIMITED

SUBMITTED TO:

MOHAMMAD TARIQ HASAN (MTH)

ASSISTANT PROFESSOR

AUDITING (ACN 4340)

SCHOOL OF BUSINESS AND ECONOMICS

UNITED INTERNATIONAL UNIVERSITY

SUBMITTED BY:

Sohel Mahamud

ID- 111 171 084

SECTION- A

DATE: 17th DECEMBER 2020

 Overview of the Company
To light up the spirit of 21stcentury, The Premier Bank limited set off its voyage of success with
a motto “Service First” in 1999 to stand out from the crowd as a distinguished financial service
provider. The motto reflects the Bank’s concern for customers’ satisfaction, flexibility,
responsiveness and productivity. Service to the Premier Bank Limited is meant not only for
clients but also for the community, not only for gain but also for governance and not only for
delivery but to ensure dynamism, discipline and accountability. Premier Bank Limited was
incorporated in Bangladesh as a banking company on June 10, 1999 under Companies Act 1994.
On 17th of June, 1999, Bangladesh Bank, the central bank of Bangladesh issued banking licenses
under the Banking Companies Act 1991.

Premier Bank Limited launched its formal activities of banking business on 26 October, 1999
with an Authorized Capital of BDT 6000.00 Million and Paid up Capital of BDT 2242.30
Million. The Head Office of Premier Bank Limited is located at Banani, one of the fast growing
commercial and business areas of Dhaka city.

It is available in 7 divisions across the country, namely, Dhaka, Chattogram, Rajshahi, Sylhet,
Barishal, Khulna and Rangpur. It has over 40 ATM booths across the country and around 100
branches. Premier Bank Ltd has 4 main categories of services that it provides to its customers:
Retail banking, Corporate Banking, SME banking and Internet Banking. The Bank has clear
vision towards its ultimate destiny – to be the best amongst the top financial institutions.
Feature of the Audited Annual Report of Premier
Bank
 Corporate profile: The names of the people forming part of the board of directors, the
Chief Financial Officer, Company Secretary, those forming the Audit Committee, NRC
Committee, Share Committee and the Auditor and the Bankers have been listed.

 Chairperson Report: The chairman's report is a significant part of a yearly regular

gathering for any organization. Contingent upon the arrangement of the gathering, and
specifically whether some other board individuals are talking, the discourse will be seen
by investors as a significant sign of the strength of their investment.

 Notice of annual General Meeting: This notice described the agenda and venue of
conducting their annual general meeting on end of the fiscal year.

 Report of the Board of Directors: The report of the board of directors, inter alia,
contains description of principal trading activities and overall bank review, in a manner
that is concise and intelligible to the users of annual report.

 Audit Report: This is the report prepared by the independent auditors which we will
discuss in next topic.

 Report of the Audit Committee of the Board: Audit committee reports give a
quarterly and yearly depiction of the monetary detailing measure, the audit process , data
on the organization's internal controls framework, and affirmation that the organization is
in consistence with laws and guidelines.

 Status on Compliance of Corporate Governance Code: Corporate

governance and compliance are linked. In fact, they fall under the umbrella term
of governance, risk management, and compliance 
  Management’s Discussion and Analysis: This section lists the accounting policies
and estimation followed by the IFRS and Companies Act, comparative analysis of
financial performance of preceding five years and a balance sheet summary, and the risks
and concerns deemed vital by the management.

 Statement of Financial position: This segment is comprised of the statement of

financial position, statement of profit or loss and other comprehensive income, statement
of changes in equity, statement of cash flows and notes and disclosures of issues related
to the information provided in such statements.

 Notes to Financial Statement: Financial report notes are the supplemental notes that
are added to the distributed budget summaries of an organization. The notes are utilized
to clarify further the numbers remembered for the fiscal summaries, just as the
bookkeeping arrangements embraced by the organization. They help various kinds of
clients, for example, monetary examiners and speculators, to decipher all the numbers
included the financial statements.

Critical evaluation of Audit report

The Audit report of Premier Bank Ltd is a Standard Unqualified Auditor’s report that has been
prepared by independent auditor, Howlader Mahfel Huq, FCA For and on behalf of Mahfel Huq
& Co. Chartered Accountants. The audit report contains the following elements:

Title of the report: Independent Auditor’s Report

Audit Report Address: To the Shareholders of Premier Bank Limited.

Introductory paragraph: In the introductory part, the auditor has stated that they have audited
the consolidated financial statements and its subsidiary (the “Group”) as well as the separate
financial statements, which comprise the consolidated and separate balance sheets as at 28 June
2020 and the consolidated and separate profit and loss accounts, consolidated and separate
statements of changes in equity and consolidated and separate cash flow statements for the year
then ended, and notes to the consolidated and separate financial statements, including a summary
of significant accounting policies and other explanatory information.

In this section it is mentioned that:

Their objective is to obtain a reasonable assurance whether the financial statements are free from
material misstatement whether due to fraud or error and to give their opinion. They exercise
professional judgment and maintain professional skepticism which means that they have an
attitude of questioning mind and they critically assess audit evidence. They obtain audit evidence
that is sufficient and appropriate to provide basis for opinion. They obtain an understanding of
internal control relevant to the audit to design audit procedures. They evaluate appropriateness
of accounting policies used and reasonableness of accounting estimates and related disclosures
made by management. They assess audit evidence and they conclude whether material
uncertainty exists that may cast significant doubt on the company’s ability to continue as a going
concern. If they find that there is uncertainty and the disclosures by management is not adequate,
they will modify their opinion.

Scope paragraph: In this paragraph, they stated that they conducted their audit procedures in
accordance with International Standards on Auditing. And their responsibilities under those
standards are further described in the Auditors’ Responsibilities for the Audit of the
Consolidated and Separate Financial Statements section of our report. They believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for their opinion.

Management is responsible for the preparation and fair presentation of the consolidated financial
statements of the Group and also separate financial statements of the Bank in accordance with
IFRSs as explained and comply with the Banking Companies Act, and other applicable laws and
regulations and for such internal control as management determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud
or error. In preparing the financial statements, management is responsible for assessing the
Group’s and the Bank’s ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Group and the Bank or to cease operations, or has no realistic
alternative but to do so.

Opinion Paragraph: In the independent auditor’s opinion, the financial statements prepared by
Premier Bank Limited gives a true and fair view of the financial position of the company as at 31
December 2019 and that its financial performance and cash flows were all in accordance with
IFRS.

Audit Report Date: 28 June 2020 marks the last day of the auditor’s responsibility for the
review of significant events that occurred after the date of the financial statements.

FEATURE OF COMPLIANCE REPORT OF

CORPORATE GOVERNANCE CODE
The compliance audit report is a certification to be done as per the condition of Bangladesh
Securities and Exchange Commission Corporate Governance Code. This report has been
prepared by independent auditor on compliance, Howlader Mahfel Huq, FCA For and on behalf
of Mahfel Huq & Co. Chartered Accountants.

They have examined the compliance status to the Corporate Governance Code by the Premier
Bank Limited for the year ended on 31st December 2019. This Code relates to the Notification
No. BSEC/CMRRCD/2006-158/207/Admin/80, dated 03 June 2018 of the Bangladesh Securities
and Exchange Commission.

Such compliance with the Corporate Governance Code is the responsibility of the Company.
Their examination was limited to the procedures and implementation thereof as adopted by the
Management in ensuring compliance to the conditions of the Corporate Governance Code.

This is a scrutiny and verification and an independent audit on compliance of the conditions of
the Corporate Governance Code as well as the provisions of relevant Bangladesh Secretarial
Standards (BSS) as adopted by Institute of Chartered Secretaries of Bangladesh (ICSB) in so far
as those standards are not inconsistent with any conditions of this Corporate Governance Code.
They stated that they have obtained all the information and explanations, which they have
required, and after due scrutiny and verification thereof, they report that, in their opinion:

 The bank has complied with the conditions of the Corporate Governance Code as
stipulated in the above mentioned Corporate Governance Code issued by the Commission
except those mentioned in the statement of compliance status,
 The bank has complied with the provisions of the relevant Bangladesh Secretarial
Standards (BSS) as adopted by the Institute of Chartered Secretaries of Bangladesh
(ICSB) as required by this Code.
 Proper books and records have been kept by the bank as required under the Companies
Act, 1994, the Securities Laws and other relevant laws.
 The governance of the bank is satisfactory.

The last date of the audit responsibility was 28 June 2020