 How is it to be alive in the shaitan, your regime, Bismillahir Rahmanir Rahim? We are going to discuss today audit reports. First of all, the learning outcome. Students will be able to understand the audit reports and its content. The important thing is types of the reports and what are the contents of those reports. It will enable to see through various types of audit reports in how the qualified and unqualified reports are prepared. What types of qualification can be reported by the audit? Here you should not be confused. Qualified report is a bad report. Unqualified report is a good report. It's otherwise, you know, qualification means something good. But here in this case, qualification is not good for the audit report. Now the objective. The auditors give assurance that the financial statements are prepared as per company's record. This is the first thing, that they are being prepared as per company's record. On the other hand, they are in accordance to the rules and regulations, standards of auditors. The financial report standards are being followed. That is also very important. The reports, which we are auditing, they should be in accordance to the international financial standards plus the company's act and plus all other regulations. The company policy is in line with the regulator. You must make sure that the company policy is in accordance with the regulator, means SSP, talk exchange and all others. They should follow the same. So first of all, auditors write. Who is auditor? Basically, first thing is auditor is, in fact, a accountant, charted the contents, management of contents. But he is in auditing profession. Not as a financial controller somewhere. His job is to audit the company. So first of all, he should have a proper qualification charted the contents or custom management. So what rights they have? If you are appointed as an auditor, so you should have some rights when you want to do the audit. Number one, right of access to all times to the books, records, documents and whatever he needs for the purpose of his audit, he is supposed to demand from the client and client is supposed to provide all those details. If he refuses to give any details on the same stage, then he should be recorded in the audit report. Means he should do a qualified report. So he is having access all the time. Right to require offices of entity to provide them with information and access. He should have a proper place to sit. He should have a proper atmosphere where he sits. The documents that he checks will be left there. But the important thing is that he should start making his own audit file. And all the documents that he needs are maintained in his file. And he should keep them with him. Right to notified and attend meetings of equity shareholders. This is also his right that whenever someone calls a meeting of shareholders, they are supposed to be called also. He will also be notified that there is a meeting and you will come. Next, right to be heard at the equity shareholders general meeting. And in AGM, he is right that he should also listen to them. Not that you should tell them what is happening. If they want to say something, they are allowed to say something. So listen to them. Right to receive a copy of written resolution pass. Any resolution pass in the annual general meeting. The copy of that is provided to them. These rights are important because of these rights. Auditor is an accounting profession who conducts an independent examination of companies accounting debt. Very clear, independent. There is no force. Whatever he asks, he has to provide. And accordingly, whatever he wants to find, he has to find his own auditor. There is a program on how to audit. For example, whenever an auditor comes, first you match the data of your last year from your file that you have taken that in the opening. If there is a change in the opening, then he will call again. Why is this a change? First, it should not be a change. It does not happen. But his duty is to check that the closing balance we left in the last year or the opening balance that we carried forward. The overriding duty of the auditor is to report on the truth and fairness of the financial state. This is the auditor's duty to tell us about the statements that they are true and fair. That is, they are right. You cannot say that they are 100% correct. No, 100% correction is not responsible. The responsibility is that they are true and fair. They are right according to the record, according to the standard. This is a duty owed to the shareholders. They are bound to say something to the shareholders. The shareholders have to report. They do not have to report management. Basically, for the shareholders. The principal responsibility is to give their opinion on financial statements that they are free from material frauds and financial mismanagement to make the audit reporters very important. This is called an audit report. But basically, this is an audit opinion. So, normally, this is written as an audit report and an opinion. But the report that is made is an opinion expression. They express their opinions about your accounts. It is not that they write a report. There is nothing like that. Number one is that all the financial statements like income statement, balance sheet, change on equity statement, cash flow statement, notes to the account, or other explanation are based on their independent opinion. If he is satisfied, then the financial statement presents financial position, results of the operations, cash flow fairly in accordance to the FIRS. The auditor expresses an unqualified statement. If he is satisfied with everything, then he gives the unqualified report. But for some reason, there is no information that he demanded and does not provide it. So, he will apply the objection and will also tell the management that this is normal. Normally, when someone raises a query about accounts, they write it and forward it. And accordingly, they want it to be written back. In the same order, we are told that what you did about what I asked. If he is satisfied with their explanation, then he takes out his points. But some points are saved that are not clear. So, for them, they have to wait. As long as the audit is going on, they wait for you to give its explanation. If they get it, it is fine. If they are not able to give it, then obviously they mention it in their report. Thank you very much.