Name : Regina Jaya

Class : AC XIII-22
NIM : 16.53.02.0008

Audit Report
a. Unqualified opinion
Report on the Financial Statements
We have audited the financial statements of XYZ Berhad, which comprise the balance sheet as at
31 December 20XX, and the income statement, statement of changes in equity and cash flow
statement1 for the year then ended, and a summary of significant accounting policies and other
explanatory information, as set out on pages AA to ZZ.

Directors’ Responsibility for the Financial Statements

The directors of the Company are responsible for the preparation of financial statements so as to
give a true and fair view in accordance with Financial Reporting Standards2 and the requirements of the
Companies Act 1965 in Malaysia. The directors are also responsible for such internal control as the directors
determine is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.

Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with approved standards on auditing in Malaysia. Those
standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material
misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on our judgement,
including the assessment of risks of material misstatement of the financial statements, whether due
to fraud or error. In making those risk assessments, we consider internal control relevant to the
entity’s preparation of financial statements that give a true and fair view 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 internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates
made by the directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.

Opinion
In our opinion, the financial statements give a true and fair view of the financial position of the
Company as of 31 December 20XX and of its financial performance and cash flows for the year
then ended in accordance with Financial Reporting Standards2 and the requirements of the Companies Act
1965 in Malaysia.

Report on Other Legal and Regulatory Requirements

In accordance with the requirements of the Companies Act 1965 in Malaysia, we also report that
in our opinion the accounting and other records and the registers required by the Act to be kept by
the Company have been properly kept in accordance with the provisions of the Act.

Other Matters
This report is made solely to the members of the Company, as a body, in accordance with Section
174 of the Companies Act 1965 in Malaysia and for no other purpose. We do not assume responsibility to any
other person for the content of this report.

(Audit Firm)
[AF: 8888]
 Chartered Accountants
(Partner)
[9999/9/99 (J/PH)]
Chartered Accountant
Date
[Location in the country]

b. Qualified Opinion

Report on the Financial Statements

We have audited the financial statements of XYZ Berhad, which comprise the balance sheet as at
31 December 20XX, and the income statement, statement of changes in equity and cash flow
statement1 for the year then ended, and a summary of significant accounting policies and other
explanatory information, as set out on pages AA to ZZ.

Directors’ Responsibility for the Financial Statements

The directors of the Company are responsible for the preparation of financial statements so as to
give a true and fair view in accordance with Financial Reporting Standards2 and the requirements of the
Companies Act 1965 in Malaysia. The directors are also responsible for such internal control as the directors
determine is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.

Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with approved standards on auditing in Malaysia. Those
standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material
misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on our judgement,
including the assessment of risks of material misstatement of the financial statements, whether due
to fraud or error. In making those risk assessments, we consider internal control relevant to the
entity’s preparation of financial statements that give a true and fair view 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 internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates
made by the directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our qualified audit opinion.

Basis for Qualified Opinion

We did not observe the counting of the physical inventories as of 31 December 20XX, since that
date was prior to the time we were initially engaged as auditors for the Company. Owing to the
nature of the Company’s records, we were unable to satisfy ourselves as to inventory quantities by
other audit procedures.

Qualified Opinion
In our opinion, except for the effects of the matter described in the Basis of Qualified Opinion
paragraph, the financial statements give a true and fair view of the financial position of the
Company as of 31 December 20XX and of its financial performance and cash flows for the year
then ended in accordance with Financial Reporting Standards2 and the requirements of the
Companies Act 1965 in Malaysia.

Report on Other Legal and Regulatory Requirements

In accordance with the requirements of the Companies Act 1965 in Malaysia, we also report that
in our opinion, the accounting and other records and the registers required by the Act to be kept
 by the Company have been properly kept in accordance with the provisions of the Act.

Other Matters
This report is made solely to the members of the Company, as a body, in accordance with Section
174 of the Companies Act 1965 in Malaysia and for no other purpose. We do not assume responsibility to any
other person for the content of this report.

(Audit Firm)
[AF: 8888]
Chartered Accountants
(Partner)
[9999/9/99 (J/PH)]
Chartered Accountant
Date
[Location in the country]

c. Adverse Opinion

Report on the Financial Statements

We have audited the financial statements of XYZ Berhad, which comprise the balance sheet as at
31 December 20XX, and the income statement, statement of changes in equity and cash flow
statement1 for the year then ended, and a summary of significant accounting policies and other
explanatory information, as set out on pages AA to ZZ.

Directors’ Responsibility for the Financial Statements

The directors of the Company are responsible for the preparation of financial statements so as to
give a true and fair view in accordance with Financial Reporting Standards2 and the requirements
of the Companies Act 1965 in Malaysia. The directors are also responsible for such internal
control as the directors determine is necessary to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.

Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with approved standards on auditing in Malaysia. Those standards require
that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement. An audit involves performing
procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The
procedures selected depend on our judgement, including the assessment of risks of material misstatement of
the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal
control relevant to the entity’s preparation of financial statements that give a true and fair view 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 internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates made by the
directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our adverse audit opinion.

Basis for Adverse Opinion

As described in Note GG to the financial statements, no provision has been made for losses
expected to arise on certain significant long-term contracts currently in progress, as the directors consider that
such losses should be off-set against amounts recoverable on other long-term contracts. Provision for
foreseeable losses on individual contracts is required by FRS 111, Construction Contracts. Had such losses
been provided for, the effects would have been to reduce profit before tax for the year and the contract work in
progress by RMXXX, income taxes for the year by RMXXX and net profit for the year by RMXXX.
Accordingly, retained earnings as of 31 December 20XX would also have been reduced by RMXXX.
 Adverse Opinion
In our opinion, because of the significance of the matter described in the Basis for Adverse Opinion
paragraph, the financial statements do not give a true and fair view of the financial position of the Company as
of 31 December 20XX and of its financial performance and cash flows for the year then ended in accordance
with the Financial Reporting Standards2 and the requirements of the Companies Act 1965 in Malaysia.

Report on Other Legal and Regulatory Requirements

In accordance with the requirements of the Companies Act 1965 in Malaysia, we also report that in our
opinion:
(a) because of the matter as described in the Basis for Adverse Opinion paragraph, the accounting and other
records have not been properly kept in accordance with the provisions of the Act.
(b) the registers required by the Act to be kept by the Company have been properly kept in accordance with
the provisions of the Act.

Other Matters
This report is made solely to the members of the Company, as a body, in accordance with Section
174 of Companies Act 1965 in Malaysia and for no other purpose. We do not assume responsibility to any
other person for the content of this report.

(Audit Firm)
[AF: 8888]
Chartered Accountants
(Partner)
[9999/9/99 (J/PH)]
Chartered Accountant

d. Disclaimer of Opinion

Report on the Financial Statements

We were engaged to audit the financial statements of XYZ Berhad, which comprise the balance sheet as at 31
December 20XX, and the income statement, statement of changes in equity and cash flow statement1 for the
year then ended, and a summary of significant accounting policies and other explanatory information, as set
out on pages AA to ZZ.

Directors’ Responsibility for the Financial Statements

The directors of the Company are responsible for the preparation of financial statements so as to
give a true and fair view in accordance with Financial Reporting Standards2 and the requirements
of the Companies Act 1965 in Malaysia. The directors are also responsible for such internal control as the
directors determine is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.

Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on conducting the
audit in accordance with approved standards on auditing in Malaysia. Because of the matter described in the
Basis for Disclaimer of Opinion paragraph, however, we were not able to obtain sufficient appropriate audit
evidence to provide a basis for an audit opinion.

Basis for Disclaimer of Opinion

As discussed in Note GG to the financial statements, a fire at the Company’s computer centre destroyed many
of the accounting records and related documents. The financial statements consequently include significant
amounts based on estimates. We were unable to carry out appropriate audit procedures to obtain sufficient and
appropriate audit evidence over these estimates. We could not determine the effect of adjustments, if any, on
the financial position of the Company as at 31 December 20XX, or on its financial performance and cash
flows for the year then ended.
Disclaimer of Opinion
Because of the significance of the matter described in the Basis for Disclaimer of Opinion paragraph, we have
not been able to obtain sufficient appropriate audit evidence to provide a basis of an audit opinion.
Accordingly, we do not express an opinion on the financial statements.

Report on Other Legal and Regulatory Requirements

In accordance with the requirements of the Companies Act 1965 in Malaysia, we also report that
in our opinion:
(a) because of the matter as discussed in the Basis for Disclaimer of Opinion paragraph, the accounting and
other records have not been properly kept in accordance with the provisions of the Act.
(b) the registers required by the Act to be kept by the Company have been properly kept in accordance with
the provisions of the Act.

Other Matters
This report is made solely to the members of the Company, as a body, in accordance with Section
174 of the Companies Act 1965 in Malaysia and for no other purpose. We do not assume responsibility to any
other person for the content of this report.

(Audit Firm)
[AF: 8888]
Chartered Accountants
(Partner)
[9999/9/99 (J/PH)]
Chartered Accountant
Date
[Location in the country]