Jatiya Kabi Kazi Nazrul Islam University

Trishal, Mymensingh.

Assignment on: Comparison between Audited and Unaudited Company.

Course Name: Auditing and Assurance
Course Code: FB 403

Submitted to,
Chandon Kumar Pal
Assistant Professor
Department of Finance and Banking
Jatiya Kabi Kazi Nazrul Islam University

Submitted by,
Binoy Patrick Nokrek
ID No: 18132652
Session: 2017- 18
Department of Finance and Banking
Jatiya Kabi Kazi Nazrul Islam University

Submitted Date: 28 June, 2022

Serial Topics Page
No No
1 Executive Summary 1
2 Components of Financial Statements 2
3 Audited Financial Statements and Unaudited Financial 2
Statements
4 Introduction of Caritas Bangladesh 3

5 Goals, Objectives, Cross Cutting Issues and partners in 4-6

Development

6 Financial Report of Caritas Bangladesh 7-10

7 Overview: PRITI Research and Consultancy Limited 11

8 Key Functions of PRITI Research and Consultancy Limited 11

9 Mission and Vision of PRITI 12

10 The benefits and advantages of an audit (Caritas Bangladesh) 13

11 Key differences between Audited Financials and Unaudited 14

Financial Statements
12 Conclusion 15

Table of Content
 Executive Summary:

This report mainly provides information about advantages of auditing of a Caritas Bangladesh and
what will be the disadvantages of not auditing by a PRITI Research and Consultancy Ltd. Caritas
Bangladesh is an audited and PRITI Research and Consultancy Ltd is an unaudited company.

Caritas Bangladesh conducted their audits in accordance with generally accepted auditing standards
as established by the Companies Act of 1994 and in accordance with the auditing standards of the
Chartered Accountants (CAs), members of ICAB. Those standards require that plan and perform the
audits to obtain reasonable assurance about whether the financial statements are free of material
misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. The audits included consideration of internal control over
financial reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Company’s internal control over financial reporting. 

Accordingly, Caritas Bangladesh expresses no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation.

On the other hand, “PRITI Research and Consultancy Limited” is an unaudited company which is
an accounting report that corporate reviewers have not checked for accuracy. In other words,
financial auditors cannot tell whether the data summaries will pass muster when it comes to
regulatory compliance, completeness and mathematical correctness. Financial statements that do
not span a whole year are usually unaudited--as auditing often represents a significant budget
component, especially if corporate activities cover many countries and business segments.

In every year published the audit report by a Caritas Bangladesh people can know about the
information of that company’s.

Page No: 01
Components of Financial Statements

Financial statements are financial reports that highlight the significant accounting information of
a business entity including its financial performance, position, and cash flows.
Business entities usually prepare four main financial statements, i.e. statement of financial
position, statement of income and other comprehensive income, statement of cash flows, and
statement of changes in equity, in addition to notes to such financial statements and other
explanatory information.

Unaudited Financial Statements

unaudited financial statements are those that have not been examined or verified by a licensed
independent auditor. The unaudited financial statements are often compiled by a business
entity’s accounting and finance functions for internal use for management purposes.

Audited Financial Statements

On the other hand, the audited financial statements are financial reports that have been subject to
independent verification and examination by a licensed auditor, who utilizes generally accepted
accounting principles such as accounting framework and International Financial Reporting
Standards (IFRS).
The auditor also utilizes International Standards on Auditing (ISA) for detailed approach and
methodology in performing the audit engagements.

Page No: 02
 Caritas Bangladesh

Introduction:

Caritas is a Latin word. Literally it means “charity” or universal love.

Caritas was founded in 1967 as the eastern branch of Caritas Pakistan. Following the cyclone of
November 1970 it was re-organized and became known as CORR (Christian Organization for
Relief and Rehabilitation) and took on the character of a national organization on January 13,
1971. The name Caritas was re-introduced in 1976.

Caritas Bangladesh has its Central Office in Dhaka. There are eight Regional (or Diocesan)
Offices in Barishal, Chattogram, Dhaka, Dinajpur, Khulna, Mymensingh, Rajshahi and Sylhet. In
all these places Caritas is operational in Integrated Development, Disaster Management and
Human Resource Development, under a central management. Caritas restricts itself at present to
208 upazilas (sub-districts) for integrated human development work.

Caritas Bangladesh is a member of the Caritas Internationals, a confederation of 165 Caritas

Member Organizations over 200 countries and territories.

Mission:
In the light of social Teachings of the Church, Caritas Bangladesh envisions a society, which
embraces the values of freedom, justice, peace and forgiveness allowing all to live as
communication and community of mutual love and respect.

Vision:
Caritas Bangladesh tries to function in partnership with people- especially poor and the
marginalized, with equal respect for all- to attain integral development, to live a truly human life
in dignity and to serve others responsibly and with love.

Page No: 03
 Goals, Objectives, Cross Cutting Issues and Partners in
Development

Goals and Objectives

Goal 1: Social Welfare for Vulnerable Communities:
• Increase Household Income above US$1.25 per Person a Day.
• Access to Environment-friendly Own House and Homestead Land.
• Establish Social Security, Human Rights, Dignity and Empowerment.
• Social Welfare for Senior Citizens, Disabled, Street Children, Transgender,
Dalit’s and Vulnerable Communities.
• Improvement of the Quality of Life of the Urban Poor, Marginalized,
Vulnerable Communities & Slum Dwellers.

Goal 2: Ecological Conservation and Food Security:

• Sustainable Agriculture are in Practice.

• Sustainable Livestock Husbandry and Poultry Rearing are in Practice.
• Sustainable Aquaculture is in Practice.
• Strengthening of Access of Extreme Poor, Poor and Vulnerable
Communities to Safe, Nutritious and Diversified Food.
• Strengthen Natural Resources Management and Biodiversity Conservation.
• Accomplished Optimal and Sustainable Utilization of Natural Resources for
Economic Development and Poverty Reduction.
• Strengthened Mechanism for Safeguarding Ecosystems, Species and Genetic
Diversity.
• Enhance Adaptive Capacity to Climate Change.

Goal 3: Education and Child Development:

• Poor and Disadvantaged Children of the Hardest to Reach Communities

have Access to Early Childhood Development (ECD)/Pre-Primary
Education.
• Children of Poor and Disadvantaged Communities have Access to Quality
Primary and Secondary Education.
• Students of Poor (youths and adults) and Disadvantaged Communities have
Access to Vocational and Technical Education.
• Children, Youths and Adults’ are Protected from Physical, Emotional and
Sexual Abuses and Other Risks (trafficking, teasing, etc.).
• Child Rights are Established in a Comprehensive and Integrated Manner
Fulfilling Children’s Holistic Development (physical & mental
development, aesthetic, spiritual development, etc.) in the Most Deserving
Areas.

Page No: 04
 Goal 4: Nutrition and Health Education:

• Strengthen Primary Health Care Services.

• Strengthen Pro-Life Reproductive Health Education and Natural Family
Planning.
• Quality and Equitable Access to Water, Sanitation and Hygiene (WASH).
• Empowering communities to prevent Sexually Transmitted Infections
(STIs), HIV and AIDS, TB, Leprosy and other communicable diseases.
• Strengthen prevention, treatment and aftercare services for drug addicts and
sexually abused.
• Strengthen Nutrition Specific Interventions.
Goal 5: Disaster Management:

• Emergency Response Mechanism is Sustainable.

• Disaster Affected People Meet Their Basic Needs with Dignity.
• Strengthening the Community for Enhancing Disaster Resilience.
• Mainstreaming of Disaster Risk Reduction (DRR) into Development and
Emergency Response Plans, Strategies and Policies.
• Reduced Damage and Loss from Disaster and Climate Change.
Goal 6: Development of Indigenous Peoples:

• Improvement of the Quality and Dignity of Lives of the Indigenous Peoples

• Strengthening Traditional Social and Cultural Organizations and Peoples’
Led Financial Institutions of Indigenous Peoples
• Strengthening Capacity Regarding Land Retention and Development of
Indigenous Peoples

Cross Cutting Issues: Partners in Development

• Good Governance
• Organizational Sustainability
• Climate Justice
• Inclusive Development
• Protection
• Disaster Risk Reduction (DRR)
• Local resources mobilization
• Extreme Poor
• Marginalized/Indigenous/Vulnerable
Communities (transgender, sex workers, drug
addicts, elderly, Dalit, people with disabilities,
street children, etc.)
• Children, Youth and Adolescent
• Government of Bangladesh
• Donors from home and abroad
• Professionals organizations
• Local Govt. Institutions

Page No: 05
Page No: 06
 Financial Report

This chapter reports on funds received (from foreign, local and beneficiaries), expenses
incurred (for projects, capital and administration) and comparison of expenses under various
programs/priorities and against project, capital and administration expenses for the Fiscal Year
2020-21 (July 2020 to June 2021).

1. Financing:
During the reporting year, a total amount of Tk. 1,957,159,494 was received as donation, of
which Tk. 1,532,563,286 represents foreign donation and the remaining amount of Tk.
424,596,208 as local donation towards local funded projects where the amounts were Tk.
1,334,124,958.34 and Tk. 414,622,200.93 respectively in the preceding year.

In addition, an amount of Tk. 873,010,433 (against Tk. 870,501,743 in Fiscal Year 2019-20)
was contributed by the beneficiaries and from the project towards the projects expenses.

The details of donation received and beneficiaries/local contribution for the Fiscal Year 2020-
21 are given in Table - A and B.

2. Expenses:

Particulars Fiscal Year 2020-21 Fiscal Year 2019-20

Projects 2,568,369,92 88.21% 2,407,889,349 88.72%
4
Administration 343,247,759 11.79% 306,254,293 11.28%
Total: 2,911,617,68 100.00% 2,714,143,642 100.00%
3
During the Fiscal Year 2020-21, total expenditure was Tk. 2,911,617,683 while project
expenditure was Tk. 2,568,369,924 (88.21%) and administration Tk. 343,247,759 (11.79%). A
comparison between the expenses of the current Fiscal Year and that of last Fiscal Year is given
below:

The administration expenses rate of the reporting year (Fiscal Year 2020-21) is 11.79% where it
was 11.28% in the Fiscal Year 2019-20.
Page No: 10

Page No: 10
 PRITI Research and Consultancy Limited

Overview:
PRITI Research & Consultancy Limited is one of the renowned unaudited, social, market &
corporate research companies in Bangladesh which is working with different Social & Market
issues. PRITI has started its journey since 2016 with outsourcing research works. PRITI is the
abbreviation of Participatory Research & Innovative Technical Initiatives. Though PRITI is a
young company but has experienced with several sectors using different methodologies.

Key Functions of PRITI:

PRITI works based anthropological research methods that are way it can maintain the
participation process in each research work.  For conducting different research works we use both
of qualitative & quantitative methods. For quantitative research approach we use F2F interview,
over phone interview, Online Interview & web-based interview through CAPI, PAPI, CATI and
WAPI. For Qualitative research approach, we use In-depth Interview (IDI), Key Informant
Interview (KII), Focused Group Discussion (FGD), Ethnography, Journey Mapping, Photo voice,
Documentary, Participant Observation & many more qualitative tools. Though the key persons of
PRITI are anthropology based that’s way anthropological research methods are being
incorporated in every research.   
PRITI is capable to cover across Bangladesh by covering 8 divisions, 64 districts, 491 Upazila,
4552 union and/or even 86000+ villages. We have a corporate office & a field office in Dhaka.
Out of Dhaka, we have some divisional & regional offices in Jessore, Chattagram, Barisal,
Faridpur, Rajshahi, Rangpur & Sylhet. We can reach even to the deep rural, Hill tracts & costal
belt areas in Bangladesh.  
We have strong network for primary data collection across Bangladesh. The field set up is field
operation in-charge, data acquisition executives, divisional coordinator, field supervisor & data
collector. For qualitative interviews & sessions, we have a panel of moderators. As per
requirement we recruit the moderator from panel. We have a panel of researcher & sector
specialist. There are Anthropologists, Sociologist, Economist, Gender Specialist, Market Analyst
& many more sector specialists. We engage the specialists from the panel as our project
requirement.

Page No: 11
 PRITI’s Vision:

 To cooperate the business groups, national and multi-national companies, development agencies
& entrepreneurs to explore the existing scenario of their relevant fields in the decision making
process or in the implementation initiatives.
 Try to make understand the clients about consumers/beneficiaries behaviors, needs, requirements
and feedback on their specific products/services.
 Try to reduce the distances between the product manufacturers/importers & end-level consumer.
 Try to change our honorable clients’ business strategies, decision making process, way of
success & their current position in the market by applying methods, tools & techniques of
corporate anthropological research.
 Pointing the weakness of companies, demand of consumers & business strategies of mid-term
beneficiaries through research.
Try to connect all types of stakeholders in a chain management system for development of any
business/project/program.

PRITI’s Mission:

 To spread the application of Business and corporate anthropological research in Bangladesh.

 Creating an observation point of consumer’s culture.
 Trying to create a global standard research platform.

Page No: 12
 The benefits and advantages of an audit (Caritas Bangladesh):

Internally prepared information and/or financial statements of a company by management cannot

to be relied on by external parties. In order to assess and to prove that financial statements
represent the correct financial situation of a company, a company can request an auditor to
perform an audit of financial statements and to issue an auditor’s opinion related to financial
statements to assess that financial statements are fairly stated (give a true and fair view).

Summary of company’s financial situation:

The most common reason to perform a (financial) audit is to ascertain the correct (properly and
fully stated) financial situation of a company and to ascertain the reliability of financial
information of a company. The auditor will analyze the accounts and financial statements and
bring forward the highlights and major (financial) concerns of a company. A shareholder,
investor and the government have a need that an independent auditor will ascertain the true and
fair view of (the financial statements i.e. financial position of) a company.

Investigate and Assess Risks:

One of the advantages that results from auditing the financial statements are to discover risks for
example related to fraud.  Also differences between the financial administration and management
information compared to the (external) financial statements come up.

Going concern – continuity:

When an auditor audits the financial statements of a company an assessment of the continuity /
going concern of the financial statements of the company in the auditor’s opinion from an
auditor is also included.

Improve of administrative organization / internal control:

As an auditor we provide insight in the efficiency and effectiveness of the processes of a

company. Improvements will be reported in a report (like a management letter) to the
management and/or stakeholders of a company.

Investments / financing:

If financial statements are audited, a company may be prepared better prepared for investors and
banks regarding investments and financing or even to prepare an initial public offering (IPO) in
advance. Information in financial statement that are audited will be trusted by banks,
Government, Tax Authorities etc.

Page No: 13
 Key differences between Audited Financials and Unaudited Financial Statements:
Key differences between Audited Financials and Unaudited Financial Statements:

 Only Annual company financial statements are audited whereas quarterly and half yearly
statements are unaudited.
 Audited Financial Statements are reported by the company in its annual report for each year
whereas unaudited financial statements are reported by the company during the whole year as per
the respective period.
 Audited company financial statements are more well scrutinized and verified than the unaudited
ones which acts as a confirming and reliability factor for the investors and shareholders.
 Unaudited results for respective periods are mainly shared by the company just for the sake of
providing a brief overview of the current period’s outlook and how the company is operating in
the current period for letting the stakeholders know about the whereabouts of the company.
 Audited financials are more costly and are recorded as per the company laws whereas unaudited
ones are cheap and recorded as per the management’s discretion.

Page No: 14
 Conclusion:
Key differences

All business entities are encouraged to prepare audited financial statements to underpin their
business vis-à-vis regulators, administrative authorities, lenders, and investors, the audited
financial statements will be considered as a sealed document of understanding the entity’s
financial position.

As a result of the audit, Caritas Bangladesh will play a helpful role in getting their information
easily and taking nest decision. On the other hand, as unaudited company faces some factors that
a user should be aware of before relying on them to an excessive extent. Knowledge of these
factors could result in a reduction of invested funds in a business, or actions taken to
investigate further.

According to the Company Act- 1994, a listed company must do the internal and external
audit by experts which is beneficiary for all parties. But the small or new growing up
company will forces not to publish a financial statement that’s why PRITI Research and
Consultancy Ltd will not publish it. Finally, every company must be published financial
statement to develop a hypothesis.

Page No: 15