The shareholders of the company can be identified to be the shareholders of HMCI.
The audit has been performed for the financial statements of HMCI for the period of 31 December 2020. In this process, the statements of the financial position, statements of the profit and loss and other comprehensive income have been performed. Along with that, the cash flow statements and adjoining notes are also evaluated in an appropriate manner. In this regard, it is also required to state that along with the evaluation of other explanatory information, the summary of the significant accounting policies have also been considered. Each financial statement of the company mainly considered the closing date of December 31, 2020.
In the business process, it has been observed that the management plays a key role in recording the financial transactions, implementing appropriate accounting standards to recognize the impact of those transactions and preparing the financial statements accordingly. Considering that, the management mainly focuses on adopting appropriate accounting policies and also establishing and maintaining
internal control. Through the proper implication of accounting policies, the management of the firm confirms that the financial transactions are properly recorded and the impact of the same evaluated appropriately. Along with this, for maintaining a desirable or effective internal control on the recording and reporting the financial transactions the management focuses on formulating and implementing appropriate internal control mechanisms in the business process. Thus, the management of the firm is mainly responsible for initiating, recording, processing and reporting the financial transactions for developing an appropriate financial statement for a certain accounting period. Apart from this, the financial events and conditions are needed to be properly assessed by the management for avoiding any type of material misstatement as well. Through the implication of proper control on the overall accounting and reporting process, the firms can control and avoid the occurrence of any type of fraud or error in its financial statements. Hence, it can be stated that the management of a business organization is responsible for establishing and retaining effective control on the internal activities required for the overall financial reporting system. The management of a firm is also responsible for assessing the effectiveness of the internal control over the overall reporting process of the financial condition. In this process, it has also been observed that the management of the company has focused on following the relevant IFRSs for preparing the financial statements and appropriate disclosure requirements following the Commercial Companies Law 2019 of Oman.
One of the key responsibilities of an auditor is to maintain and provide a clear and specified expression of opinion after the evaluation of the developed financial statements of the companies. In this process, at the time of performing the audit activities an auditor must acquire sufficient and relevant audit evidence. An auditor of an organization is also responsible for finding out materiality of the uncorrected misstatements in aggregate or individually. During the audit process, it is essential for an auditor to measure if the financial statements and other relevant disclosures provide a fair and true view to the users of the same. At the time of auditing evaluate whether all of the material aspects are followed to prepare the financial statements. In this process, an auditor must consider whether the relevant financial reporting frameworks are followed along with the applicable regulating laws. This is because with the proper evaluation of the legal acceptability of the developed financial statements an auditor can ensure that the provided financial information is appropriate and legally acceptable. One of the crucial aspects for the auditors of a firm can be identified to conclude on the appropriate use of the concept of going concern basis of accounting by the management of a business entity. Further, it can be stated that an auditor must evaluate the overall presentation, structure and content of the developed financial reports of the company in an appropriate and effective manner. Hence, the responsibilities of the auditor’s of a business organization can be identified to be well-diversified and extensive for the financial statement evaluation process. The implication of ISAs helped to perform the audit process in an appropriate and ethical manner.
The auditor’s opinion of a firm is mainly formed based on the financial statements such as balance sheet, income statement, statement of changes in the financial position and application of the cash flow statement. In this process, apart from the name of the entity, it is essential to form an opinion through proper evaluation of the relevant accounting policies used in the process of developing the financial statements. In this process, it can be identified that the financial statements of HMCI have covered mainly the period ending on 31st December 2020. It has been observed that the considered organization has presented its financial statements in a fair and appropriate manner considering all of the material aspects. Thus, it can be stated that the reported financial statements of the organization have provided a fair and true view of the actual financial condition of the firm in an appropriate and efficient manner. In this process, it has been observed that the auditor has followed the International Standards on Auditing (ISAs) for completing their audit process. Apart from this, the IESBA Code along with the relevant ethical requirements as followed in the Sultanate of Oman has been referred by the auditor. Thus, with the proper implication of the international standards the auditor has acquired relevant, appropriate and sufficient audit evidence to form a basis for the developed opinion.
In this process, it has been identified that the financial statements of the organization comply with relevant material respects along with proper requirements of disclosures as specified in the Commercial Companies Law, 2019 of Oman. Apart from this, it can be observed that the relevant requirements of disclosure are maintained as per the guidelines issued by the Capital Market Authority for the Public Joint Stock Companies.
February 16, 2021
Muscat – Sultanate of OmanOrder Now