Basic Elements of Auditors Report (a) Title

(b) Addressee

Illustrative Auditors Report

AUDITORS REPORT FIANACIAL STATEMENT TO THE SHAREHOLDERS OF ONE BANK LIMITED

(c) Opening or introductory paragraph:

(i) Identification of the financial statement We have audited the accompanying financial audited statements of ONE Bank Limited (the

Bank) which comprise the balance sheet as at 31 December 2010, and the profit and loss account, statement of changes in equity and cash flow statement for the year then ended, and a summary of significant accounting policies, other explanatory notes and annexure. (ii) A statement of the responsibility of the Management is responsible for the entitys management and the preparation and fair presentation of these financial statements in accordance with responsibility of Auditor Bangladesh Accounting Standards (BAS), Bangladesh Financial Reporting Standards (BFRS), the Bank Companies Act 1991, the rules and regulations issued by the Bangladesh Bank, the Companies Act 1994 and other applicable laws and regulations. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Our responsibility is to express an opinion on these financial statements based on our audit. (d) Scope paragraph (describing the nature of an audit) (i) A reference to the ISAs or relevant We conducted our audit in accordance with Bangladesh Standards on Auditing. Those national standard of practice standards require that we comply with relevant ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free of material misstatement. (ii) A description of the work the auditor An audit involves performing procedures to performed obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment,

including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments; we consider internal control relevant to the entitys preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys internal control. An audit also includes evaluating the appropriateness of accounting principles used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. (e) Opinion Paragraph Containing (i) A reference to the financial reporting framework used to prepare the financial statement (ii) An expression of opinion on the financial statements Financial statements have been prepared in accordance with Bangladesh Accounting Standards (BAS). In our opinion, the financial statements have been prepared in accordance with Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS), give a true and fair view of the state of the Banks affairs as at 31 December 2010 and of the results of its operations and its cash flows for the year then ended and comply with the applicable sections of the Bank Companies Act 1991, the rules and regulations issued by the Bangladesh Bank, the Companies Act 1994 and other applicable laws and regulations. We also report that: a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit and made due verification thereof; b) In our opinion, proper books of account as required by law have been kept by the Bank so far as it appeared from our examination of those books and proper returns adequate for the purpose of our audit have been received from branches not visited by us; c) The Banks Balance Sheet and Profit and

(f) Date of the report (g) Auditors address (h) Auditors sign

Loss Account together with the annexed notes 1 to 49 dealt with by the report are in agreement with the books of account and returns; d) The expenditure incurred was for the purpose of the Banks operations; e) The financial position of the Bank as at 31 December 2010 and the profit for the year then ended have been properly reflected in the financial statements, the financial statements have been prepared in accordance with the generally accepted accounting principles; f) The financial statements have been drawn up in conformity with the Bank Companies Act 1991 and in accordance with the accounting rules and regulations issued by the Bangladesh Bank; g) Adequate provisions have been made for advances and other assets which are in our opinion, doubtful of recovery; h) The financial statements conform to the prescribed standards set in the accounting regulations issued by the Bangladesh Bank after consultation with the professional accounting bodies of Bangladesh; i) The records and statements submitted by the branches have been properly maintained and consolidated in the financial statements; j) The information and explanations required by us have been received and found satisfactory; k) 80% of the risk weighted assets have been reviewed by us spending 3,150 man hours. Dhaka, February 19, 2011 Hoda Vtasi Chowdhury & Co Chartered Accountants