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INDEPENDENT AUDITOR’S REPORT ON THE ACCOUNTS OF
ZEBIB MOHAMMED HUSSEN
Qualified Opinion We have audited the financial statements of Zebib Mohammed Hussen set out on page 3 to 9 which comprise the balance sheet as at 07 July 2023, the profit and loss statement, the statement of change in equity and cash flows statement for the year ended 07 July 2023 and notes to the financial statements, including a summary of significant accounting policy specified on page 7. In our opinion, except for the effect of matters described in Basis for Qualified Opinion section of our report, the accompanying financial statements present fairly, in all material respects, the financial position of the undertaking as at 07 July 2023, and its financial performance and cash flows for the year ended 07 July 2023 in accordance with Generally Accepted Accounting Principles. Basis for qualified Opinion
1. We noted that Ledger cash balance does not agreed with bank statement balance of Awash Bank Head office branch. 2. We noted that Owners withdrawal is more than the Retained earning balance.
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the undertaking in accordance with the Ethiopian Code of Ethics for Professional Accountants, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matter
Without qualifying our opinion, we draw the attention of management that the accumulated loss of the undertaking is more than the capital. The accumulated loss is Birr (216,880.77) and the capital is Birr 200,000.00. We did not modify our opinion in respect of this matter. 2
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with Generally Accepted Accounting Principles, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the undertaking ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the management either intends to liquidate the business or to cease operations, or have no realistic alternative but to do so. Management is responsible for overseeing the undertaking’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Tafesse, Shisema and Ayalew Certified Audit Partnership
