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Saturday, 5 November 2011

As an auditor give you have completed the annual accounts of a limited company. How would you give an unqualified report to the shareholders

ANNUAL REPORT :-
Annual report is required for every public company where audit is compulsory. In the annual general meeting of the company this report is presented. In the meeting profit and loss account and balance sheet duly verified by the auditors are require to be presented. It has two kinds :

1. Unqualified Report.
2. Qualified Report.

UNQUALIFIED REPORT or CLEAN REPORT :-
When auditor is fully satisfied about the account matters and legal requirements. He can issue the clean report. In other words it is a true and fair view of the financial statement. He may say that clean report is audit report which contains no objection.


FEATURES OF UNQUALIFIED REPORT :-
Following are the features of unqualified report :

1. All Informations :-
In the report auditor declares that he has obtained all types of informations related to business which were needed for the purpose of audit.

2. According To Company Ordinance :-
Auditor declares that balance sheet and profit and loss accounts have been draw in conformity with the above ordinance and these agree with the books of account.

3. Expenditure :-
Auditor has also to give his opinion that expenditure incurred during the year was for the purpose of company's business.

4. Proper Books :-
In this report auditor also declares that proper books of accounts as required by the company ordinance were kept by the company.

5. Investment :-
It is also declared by the auditor that investment made during the financial year was also made according the business object of the company.

6. Opinion About Balance Sheet :-
In the balance sheet auditor also declares that the balance sheet presents a true and fair view of the company's affair and financial position.


SPECIMEN OF UNQUALIFIED REPORT
To,
The share Holders.
Gul Tax Company Ltd
Jaypur.

Gentleman ;
We have examined the balance sheet of Gul Tax Company Ltd, Jaypur as at December 31, 2009 and the profit and loss account and the statement of changes in financial position for the year ended. on that date.
We have obtained all the informations to best of our knowledge for the audit purpose. In our opinion :

1. All the books of account required by the company ordinance have been kept by the company.

2. We have obtained all the necessary informations and expenditure for the purpose of audit.

3. The balance sheet and profit and loss accounts have been drawn up in conformity with the companies ordinance and with the books of accounts.

4. Expenditure was incurred for the company's business purpose during the year.

5. Business conducted during the year was according the objects of the company.

6. According to the best of our knowledge, the said accounts of the company give the informations required by the companies ordinance. The said accounts give a true and fair view of the company's affairs as at December 31, 2009.

MIRZA AND COMPNAY
CHARTED ACCOUNTANTS
JAYPUR MAY 31, 201O

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