Shahrukh and Company, Chartered Accountants, have conducted the statutory audit of

the financial statements of Karim Limited, a listed company, for the year ended 30 June

20X2 under the Companies Act, 2017. The job incharge has drafted the following audit

report:

Auditors' Report to the Members

We have audited the annexed balance sheet of Karim Limited (the Company) as at 30

June 20X2, and the related Income and Expenditure Account, Statement of

Comprehensive Income, Cash Flow Statement and Statement of Changes in Equity

together with the notes forming part thereof, for the year then ended and we state that we

have obtained all the information and explanations which were necessary for the purposes

of our audit.

It is the responsibility of the company's management to establish and maintain a system

of internal control and make and present the above said statements in conformity with

the approved auditing standards and the requirements of the fourth schedule to the

Companies Ordinance, 1984. Our responsibility is to audit these statements. We

conducted our audit in accordance with the auditing standards as applicable in Pakistan.

These standards require that we plan and perform the audit to obtain reasonable and

limited assurance about whether the above statements are free of any misstatement. An

audit includes examining evidence supporting the amounts and disclosures in the above

said statements. An audit also includes assessing the accounting policies and significant

estimates made by management, as well as, evaluating the overall presentation of the

above said statements. We believe that our audit provides a reasonable basis for our

opinion and, after due verification, we report that:

(a) in our opinion, proper books of accounts have been kept by the company.

(b) in our opinion:

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(i) the balance sheet and profit and loss account together with the notes thereon have been

drawn up in conformity with the Companies Ordinance 1984, and are in agreement with

the books of account and are further in accordance with accounting policies consistently

applied;

(ii) the expenditure incurred during the year was in accordance with the objects of the

Company; and

(iii) the business conducted, investments made and the expenditure incurred during the

year were for the purpose of the Company's business;

(c) in our opinion and to the best of our information and according to the explanations

given to us, the balance sheet, profit and loss account, statement of comprehensive

income, cash flow statement and statement of changes in equity together with the notes

forming part thereof, on form with the approved accounting standards as applicable in

Pakistan and give the information required by the Companies Ordinance, 1984, in the

manner so required and respectively give a true and fair view of the state of the

Company's affairs as at 30 June 20X2; and

(d) in our opinion, no zakat was deductible at source under the Zakat and Ushr

Ordinance, 1980.

Chartered Accountants

Date: 01 September 20X2

Required:

Identify the errors in the above report vis--vis a standard statutory audit report

(Note: You are not required to redraft the report.)