Name:Tonmoy Debnath

Roll No:20 AIS 044

Course Code:AIS 3103

Course Name:Audit and Assurance-1

Subject:Analysis of the Independent Auditor’s Report of IFIC Bank Limited

Independent auditor’s report : An independent Auditor's Report is an official opinion issued by an

external or internal auditor as to the quality and accuracy of the financial statements prepared by a
company. The report is a primary source of communication between the auditor and users of
financial statements.An independent auditor report is a report given by an independent auditor after
examining financial statements, books of accounts, financial transactions, accounting practices, and
internal and external control of an organization.An Independent auditor is an independent person
who is not associated with the company by any means and is appointed by the company with the
consent of the board of directors. He may be a chartered accountant or certified public accountant..
An independent auditor gives a separate auditor report after analyzing financial statements, books
of accounts, financial transactions, accounting practices, and internal and organization’s external
control.Unmodified reports and modified reports are the two types of independent auditor
reports.Title, addressee, the responsibility of the management and the auditor, the scope of the
audit, auditor opinion, basis of the opinion, other reporting responsibility, the auditor’s signature,
place of a signature, and date of the audit report are the independent auditor reports format.

Financial statements : Financial statements (or financial reports) are formal records of the financial
activities and position of a business, person, or other entity.Relevant financial information is
presented in a structured manner and in a form which is easy to understand. They typically include
four basic financial statements accompanied by a management discussion and analysis:A balance
sheet or statement of financial position, reports on a company's assets, liabilities, and owners equity
at a given point in time.

An income statement—or profit and loss report (P&L report), or statement of comprehensive
income, or statement of revenue & expense—reports on a company's income, expenses, and profits
over a stated period. A profit and loss statement provides information on the operation of the
enterprise. These include sales and the various expenses incurred during the stated period.

A statement of changes in equity or statement of equity, or statement of retained earnings, reports

on the changes in equity of the company over a stated period.

A cash flow statement reports on a company's cash flow activities, particularly its operating,
investing and financing activities over a stated period.

Bangladesh Standards on Auditing (BSA) : It is a set of systematic guidelines used by auditors when
conducting audits of companies financial records.Those standards require that we plan and
performe the audit to obtain reasonable assurance about wheather the financial statements are free
of material misstatement.

On a test basis : It basis is defined as the source of information or the document that is needed to
write test cases and also for test analysis. Test basis should be well defined and adequately
structured so that one can easily identify test conditions from which test cases can be derived.
Reasonable basis : is a relatively high standard of tax reporting that is significantly higher than not
frivolous or not patently improper. The reasonable basis standard is not satisfied by a return position
that is merely arguable or that is merely a colorable claim.

In our opinion : It indicates that it is what you or someone else thinks, and is not necessarily a fact.
Auditors report that in their opinion,proper books of account as required by law have been kept by
the company so far as it appeared from our examination of those books and proper returns
adequate for the purposes of our audit have been received from branches not visited by us. An
auditor's opinion is a certification that accompanies financial statements. It is based on an audit of
the procedures and records used to produce the statements and delivers an opinion as to whether
material misstatements exist in the financial statements. An auditor's opinion may also be called an
accountant's opinion. A disclaimer of opinion can only be issued due to a scope limitation. In this
case, the misstatements are material and pervasive. In other words, the auditor is unable to collect
sufficient appropriate audit evidence to base its audit on and, as a result, a large number of accounts
are not verifiable.

Give a true and fair view : A True and fair view in accounting (specifically auditing) means that a
financial statement is free from material misstatements and faithfully represents the financial
performance and positioning of an entity. The FRC’s statement points out that the relevance of the
true and fair requirement is indicated by the fact that professional judgement should be applied at
all stages of accounts preparation, as opposed to mechanically following the accounting standards.
For example:

.where there is a choice of policies allowed under accounting standards, ensuring that those
selected are appropriate according to the circumstances of the company

.establishing accounting policies for items not specifically covered by accounting standards or where
they are ambiguous

.making judgements, for example about valuation, aimed at giving a true and fair view

.not using detailed accounting rules as an excuse for poor accounting

.considering what is and what is not material

.giving appropriate disclosures even where not specifically required by accounting standards

.ensuring that significant information is not obscured by immaterial or irrelevant disclosures

.standing back at the end of the process and making sure that, overall, the accounts do give a true
and fair view.

Auditor’s responsibility : The auditor has a responsibility to plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement,
whether caused by error or fraud. The auditor's objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free from material misstatement, whether due to
fraud or error, and to issue an auditor's report that includes the auditor's opinion. The auditor also:

.Identifies and assesses the risks of material misstatement of the entity’s (or where relevant, the
consolidated) financial statements, whether due to fraud or error, designs and performs audit
procedures responsive to those risks, and obtains audit evidence that is sufficient and appropriate to
provide a basis for the auditor’s opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control. The auditor includes
an explanation in the auditor’s report of the extent to which the audit was capable of detecting
irregularities, including fraud

.Obtains an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the entity’s (or where relevant, the group’s) internal control.

.Evaluates the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors

.Concludes on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the entity’s (or where relevant, the group’s) ability
to continue as a going concern. If the auditor concludes that the use of the going concern basis of
accounting is appropriate and no material uncertainties have been identified, the auditor reports
these conclusions in the auditor’s report. If the auditor concludes that a material uncertainty exists,
the auditor is required to draw attention in the auditor’s report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. The
auditor’s conclusions are based on the audit evidence obtained up to the date of the auditor’s
report. However, future events or conditions may cause the entity (or where relevant, the group) to
cease to continue as a going concern

.Evaluates the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events
in a manner that achieves fair presentation (i.e gives a true and fair view).

.Where the auditor is required to report on consolidated financial statements, obtains sufficient
appropriate audit evidence regarding the financial information of the entities or business activities
within the group to express an opinion on the consolidated financial statements. The group auditor
is responsible for the direction, supervision and performance of the group audit. The group auditor
remains solely responsible for the audit opinion.

Key audit Matters :key audit matters are those matters that,in auditor’s professional judgement,
Were of most significance in auditor’s audit of the consolidated financial statements of the current
period .These matters were addressed in the context of our audit of the consolidated and separate
financial statements as a whole,and in forming our opinion thereon,and we do not provide a
separate opinion on these matters. Examples of KAMs include:

.Significant estimates.

.Significant unusual transactions.

.Revenue.

.Goodwill.

.Intangibles.

.Income taxes.

.Contingencies.

.Implementation of new IT systems that have a significant impact on financial reporting.

Chartered Accountants : Chartered accountants work in all fields of business and finance, including
auditing, taxation, financial and general management. Some are engaged in public practice work,
others work in the private sector and some are employed by government bodies.Chartered
accountants' institutes require members to undertake a minimum level of continuing professional
development to stay professionally competitive. They facilitate special interest groups (for instance,
entertainment and media, or insolvency and restructuring) which lead in their fields. They provide
support to members by offering advisory services, technical helplines and technical libraries. They
also offer opportunities for professional networking, career and business development.