Audit Report

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Introduction: Statement of problem: AppolloIspat Complex Limited incorporated the incorrect financial statements for the year ended on June 30, 2011 with the Prospectus, which do not give a true and fair view of the state of the company’s affairs. For this unfair practice AppolloIspat Complex Limited and ICB Capital Management Limited have been punished. Objectives of study: This report is based on study purpose and the objective of the report is to gather knowledge about law and punishment procedures regarding financial misstatement and auditing scandal maintained in Bangladesh. Analyzing AppolloIspat Complex Limited’s financial misstatement and the punishment procedures we are trying to find out the auditors…show more content…
Disobedience of securities related laws by Appollo Ispat Complex Limited: Appollo Ispat Complex Limited incorporated the incorrect financial statements for the year ended on June 30, 2011 with the Prospectus, which do not give a true and fair view of the state of the company’s affairs as of June 30, 2011 as the company has included 1.5415 acres of lands in the financial statements which do not belong to the company, value of such lands overstated the company’s assets as of June 30, 2011. Even that, no disclosure has been made in the above-mentioned financial statements as well as draft prospectus with regard to incorporation of such land in the financial statements. Incorporation of such incorrect financial statements to the Prospectus (i.e., in the public offering document) is equal to giving of false/incorrect information to the general investors/public. Submission of such false/incorrect information/Prospectus incorporating in correct financial statements for the year ended on June 30, 2011 is a violation of section 18 of the Securities and Exchange Ordinance, 1969. Disobedience of securities related laws by ICB Capital Management Limited: ICB Capital Management Limited-
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