ROLE: My role is an external auditor, independent of the entity, Telco Corporation. The
following auditor report will perform unbiased and professional accountancy to review and
finalize the corporation’s 2012 fiscal year end financial statements.
USERS AND OBJECTIVES:
CIBC is the primary user of Telco Corporation’s financial statements. Its objective is to assess the
possibility of acquiring 40% ownership interest in Telco. Therefore, the corporation’s 2012
financial statements are helpful for CIBC to review the corporation’s performance through
assessing its profits and ratios. CIBC must ensure their profits and return on acquiring Telco’s
ownership interest. In return Telco will be able to raise $2 million by issuing stock to the public.
2. Metro Bank
Metro Bank is also a user of Telco Corporation’s financial statements. Its objective is to assess
the possibilities of providing Jason a bank loan. Metro Bank will review Telco Corporation’s
financial position, performance, trends and profits to ensure repayment of the loan in the future.
Metro Bank must also consider whether Telco will successfully utilize the loan to continue
growth and extend profits in the rural niche, which also ensures repayment.
1. As a private corporation, Telco Corporation must report financial information using IFRS
standards, as requir