Case 1: Mr. Mahmoud is the owner of EFG company his finance manager Miss. Bushra presented financial statements with big difference of percentage declined in terms of assets, net income and high increased of liabilities compared to the last year. Mr. Mahmoud ask Miss. Bushra to give explanation, that did not satisfy him. Mr. Mahmoud decided to hire external auditor to clear his doubts. Based on the above scenario:

1. Wite at least 3 interpretations of financial statement which the auditor may provide. Justify your answer practically

. 2. How auditor will plan his work to clear Mr. Mahmouds doubts? Suggest some recommendations on how to rectify the issues in the above cited case