Question

1. Identify and explain the difference between the Audit Committee Report and independent Auditors Report from annual report of Saudi Aramco. What is the basic information discussed in these two reports? What do you think which report provides reliable information to stakeholders?

Answer 1

before start finding diffrence between those 2 reports( the Audit Committee Report and independent Auditors Report from annual report of Saudi Aramco)

we need to know what is meaning

Audit Committee Report- financial reporting process and disclosure of financial information leading to presentation of financial statements that are true and fair.

independent Auditors report- The purpose of communicating key audit natters us to enhance the communicative value of the audito's report b providing greater transperacy  about the audit that was performed.independent audit report provides additional information to intended users of the financial statements.that provide easy language those matters that are very important to understand matters.

Difference between Audit Committee Report and independent Auditors Report from annual report of Saudi Aramco-

1. Independent auditors reports make after audit committee report becouse it covers topic from audit committee report.
2. The practitioner’s report on special purpose financial statements shall include an Emphasis of Matter paragraph alerting users of the practitioner’s report that the financial statements are prepared in accordance with a special purpose framework and that, as a result, the financial statements may not be suitable for another purpose
3. If the practitioner considers it necessary to communicate a matter
   other than those that are presented or disclosed in the financial statements that, in the
   practitioner’s judgment, is relevant to users’
4. audit report make by insiders of company but independent auditors report make by outsiders.

audit committee report may or maynot be biased but independent auditors report always be not biased becouse thay are make by outsiders.

What is the basic information eliments in these two reports-Title ,Addressee,Opinion(spacially for indipendent auditor),Basis of the opinion,Management’s Responsibility for Financial Statement Auditor’s Responsibility,Other Reporting Responsibilities,Location of the description of the auditor’s responsibilities ,

in the audit report have basic information like is the data currect that comapany has showing in his final accounts ,is it not there information which is hided by comapany etc.

Report provides reliable information to stakeholders is independent Auditors Report becouse it represent all the currect informtion which are very very important for stakeholders.it gives a opinion as well which is also good for stakehoders .they can see that the comapany doing is doing good or his investment is in good palace or not.