Financial Reporting on the Internet (HSBC)

The internet is a good place to get information that is useful to you in your study of accounting. For example, you can find information about current events, professional accounting organizations, and specific companies that may support your study.

HSBC Bank Middle East Limited is the largest and most widely represented international bank in the Middle East. HSBC Bank Oman S.A.O.G has operated in the Sultanate since 1948, it provides a wide range of banking services for both corporate and individual customers. In recent years HSBC Oman has expanded to over 90 branches and in addition has a full-service trading operation, private banking operation, and a custodial service for the Muscat Securities Market. The bank has several dedicated 'Premier' Customer Service Centers in key expatriate residential areas. In 2012, HSBC merged with Oman International Bank and by the end of 2012 all OIB branches had been rebranded as HSBC Bank Oman S.A.O.G. Unfortunately the service has deteriorated after the merger.

HSBC has in recent years upgraded its services to include Mobile Banking, Phone Banking and Internet Banking including the recent introduction of the Secure Key and apps available on the Apple app store. They also offer SMS alerts for all transactions that take place on the account including withdrawals, transfers and purchases

Access the HSBC Corporate web page at: http://www.about.hsbc.co.om/investor-relations , then download the annual report and accounts 2016 in PDF Form.

Use the annual report to answer the following questions.

INITIAL UNAUDITED ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016

Jan 12, 2017 - 02:00PM Company : HSBC BANK OMAN

HSBC Bank Oman S.A.O.G. (HBON) announces its initial unaudited financial results for the year ended 31 December 2016. This is in compliance with the rules and guidelines on Disclosure by Issuers of Securities and Insider Trading issued by the Capital Market Authority.

The initial unaudited annual financial results are subject to approval by HBON's Board of Directors, the Central Bank of Oman and the shareholders of the bank.

Key highlights:

	31 Dec 16	31 Dec 15	Change %
	RO million	RO million
Total assets	2,253.9	2,199.9	2.5
Loans and advances to customers - net	1,418.4	1,200.8	18.1
Customer deposits	1,866.7	1,802.3	3.6
Total equity	313.7	308.5	1.7
Operating income	75.2	73.5	2.3
Loan impairment (charges) net of recoveries	(5.6)	(3.4)	(64.7)
Operating expenses	(48.4)	(54.7)	11.5
Profit for the year	16.9	12.9	31.0

Go to Report of Independent Registered Public Accounting Firm& answer the following questions. Read the report carefully.

Name the external auditor of HSBC. Give some introduction on the functions of external auditor and provide reference from report. (10 marks)

What do you understand by material misstatements? Is there any material misstatement reported by the external auditors while performing audit procedures? (10 marks)

Who is responsible for preparing financial statements of HSBC? What is the external audit report on the presentation of financial statement of HSBC? Name the different Financial statements that audited by external auditors. (10 marks)

Discuss the difference between the Audit Committee Report and Auditors Report. What is the basic information discussed in these two reports?

(10 marks)

Explain the term Audit Risk and Audit evidence. How auditors can reduce audit risk, support your answer from annual report of Adidas.

(10 marks)

What do you understand by assumption going concern. What auditors view on the company assumption of going concern? (10 marks)

Are auditors responsible for frauds? Discuss the auditor responsibility for the detection of errors and frauds? Support your answer from the Annual report of HSBC. (10 marks)

What does the term internal control means? What are the views of external auditors on management internal control over financial reporting? (10 marks)

What do you understand by the term independence in opinion? Support your answer with evidence from Annual report of HSBC. (10 marks)

Write a summary on the auditors report, in your discussion you need to elaborate the key audit matters. (10 marks)

In your answer, you should explain each point or inquire separately. Use the following headings (below) to make up the different sections of your answer:

PT3 form (Cover)	Available in Moodle.
Contents	Title and contents page
TMA	Financial Reporting on the Internet (HSBC)
Reference list	Recorded according to the Harvard style - Available in LMS.