Financial Reporting on the Internet
Al-Rajhi Bank
The internet is a good place to get information that is useful to you in your study of accounting. For example, you can find information about current events, professional accounting organizations, and specific companies that may support your study.
Founded in 1957, Al Rajhi Bank is one of the largest banks in the world by market cap and the largest in the Middle East and Saudi Arabia, with total assets of SAR 658 billion (US$ 175 billion), a paid up capital of SAR 40 billion (US$ 10.66 billion) and an employee base of over 9,300+ associates. With over 60 years of experience in banking and trading activities, the various individual establishments under the Al Rajhi name were merged into the umbrella ‘Al Rajhi trading and exchange corporation’ in 1978 and it was in 1988 that the bank was established as a Saudi joint stock company under the name of Al Rajhi Banking and Investment Corporation which later in 2006 was named as Al Rajhi Bank. Deeply rooted in Islamic banking principles, the Sharia compliant banking group is instrumental in bridging the gap between modern financial demands and Sharia intrinsic values, whilst spearheading numerous industry standards and development.
With an established base in Riyadh, Saudi Arabia, Al Rajhi Bank has a vast network of over 517 branches, more than 4,844 ATM’s, 373,046 POS terminals installed with merchants and the largest customer base of any bank in the Kingdom, in addition to 205 remittance centers across the kingdom. The first branch was opened in Aldirah in 1957.
Access the AL-RAJHI BANK Corporate web page at:
Investor Relations | Alrajhi Bank then download the annual report 2021 in PDF Form.
Use the annual report to answer the following questions.
Go to “Report of Independent Registered Public Accounting Firm”& answer the following questions. Read the report carefully.
- An external auditor analyses the financial information of a company and reports on finding. Elaborate the functions of external auditor and provide reference from report. Who is the external auditor of Al-Rajhi Bank? (10 marks)
- Certified Public Accountants are independent auditors and provides professional services. Explain briefly the principle of assurance and provide the details of assurance from Annual report of Al-Rajhi Bank. (10 marks)
- Who is responsible for preparing financial statements of Al-Rajhi Bank? What is the external audit report on the presentation of financial statement of Al-Rajhi Bank? Name the different financial statements that audited by external auditors. (10 marks)
- Discuss the difference between the Audit Committee Report and Auditors Report. What is the basic information discussed in these two reports? Give evidence from annual report of Al-Rajhi Bank.
(10 marks)
- Explain the term ‘Audit Risk’ and ‘Audit evidence’. How auditors can reduce audit risk, support your answer from annual report of Al-Rajhi Bank.
(10 marks)
- What do you understand by assumption “going concern”. What auditors view on the company assumption of going concern and what is the opinion of management on going concern of Al-Rajhi Bank? (10 marks)
- Are auditors responsible for frauds? Discuss the auditor responsibility for the detection of errors and frauds? Support your answer from the Annual report of Al-Rajhi Bank.
(10 marks)
- What does the term “material misstatement” mean? Support your answer with an example from Annual report of Al-Rajhi Bank.
(10 marks)
- Reliable accounting and financial reporting aid society in allocating resources in an efficient manner. Explain why audits are demanded by society? Support your answer from the Annual report of 2021 of Al-Rajhi Bank?
(10 marks)
- Write a summary on auditor’s report and evaluation about Al-Rajhi Bank performance, based on your understanding.
(10 marks)
In your answer, you should explain each point or inquire separately. Use the following headings (below) to make up the different sections of your answer:
| PT3 form (Cover) | Available in LMS. |
| Contents | Title and contents page |
| TMA | Financial Reporting on the Internet |
| Reference list | Recorded according to the Harvard style – Available in LMS. |
