3.2 Auditor's Report

Recipient: JCS "Bayan Sulu"

Auditing company "TrastFinAudit"

Name and legal status of the participant: Limited Liability Company "Audit Company" TrastFinAudit "

Address and principal place of business: Bostandikskiy district, Satpaeva st.,

house 29.

The entity. Joint Stock Company "Bayan Sulu"

Name: JSC "Bayan Sulu"

Address: Borodin, 198, 110000, Kostanay

The company is a member of PJSC "The Chamber of Auditors" the Republic of Kazakhstan, as well as member of the International accounting network «JHI Association», which gives the right to audit in an international company and the recognition of audit reports by the European Bank for Reconstruction and Development.

Licensed by the Ministry of Justice Financial number 0000085.

Based on our study, the following conclusions and suggestions:

1. Information plays a huge role in modern conditions. At the same importance in the audit of the financial statements is a system of economic information. Basic information database audit is financial statements.

2. Financial Statements with respect to which the auditor expresses an opinion, drawn up on the basis of the enterprise management truthful presentation and disclosure of its constituent elements, and the manual states that the financial statements meet certain categories, such as:

(a) the approval in respect of classes of transactions and events for the period of the audit:

• Emergence - reflected the transactions and events have occurred related to the subject.

• Completeness - all transactions and events that should be reflected, reflected.

• Accuracy - amounts and other data on transactions and events reflected properly reflected.

• Closure - transactions and events are recorded in the proper accounting period.

• Classification - transactions and events are recorded at the proper accounts.

(b) the approval in respect of account balances at the period end:

• Existence - assets, liabilities and equity interest in actually exist.

• Rights and responsibilities - entity owns or controls the rights to assets and liabilities are obligations of the entity.

• Completeness - all assets, liabilities and equity interest in that it was necessary to reflect, reflected.

• Evaluation and distribution - assets, liabilities and share capital are included in the financial statements for the appropriate amount and all expiring Valuation adjustments and distribution properly reflected.

(c) approval by the presentation and disclosure:

• The phenomenon of rights and obligations - disclosed events, transactions and other conditions have occurred and are associated with the subject.

• Completeness - all disclosures that should have been included in the financial statements, are included.

• Classification and understandability - financial information is properly presented and described, the disclosures are clearly expressed.

• Accuracy and evaluation - financial and other information is disclosed fairly and at appropriate amounts.

3. Examining the internal control system and the client's business, the auditor concludes that the required quantity of audit evidence. So when the effective functioning of the system of internal control and sound financial condition, the auditor may use less evidence than the inefficient functioning of the internal control system or its complete absence.

4. Financial statements of "Bayan Sulu" prepared in accordance with the requirements of the Law of the Republic of Kazakhstan dated February 28, 2007 N 234 "On Accounting and Financial Reporting", Accounting Standards. Revised accounting policies in accordance with IFRS, guidelines on the application of international financial reporting standards and chart of accounts in accordance with IFRS.

5. Based on the analytical procedures revealed that the financial condition of JSC "Bayan Sulu" is unstable, with unsecured pay. The company is totally dependent on debt financing.

6. To improve the financial stability it is recommended:

1) rationally organize the material supply, the formation of production plans with reference to sales;

2) effective use of fixed assets (non-current assets), to investigate the possible need for replacement of fixed assets;

3) to promote investment policy;

4) increase the equity; increase the share of own sources of financing that can be achieved by increasing the profitability of the organization and the future direction of net income to raise their own funds;

5) Develop an effective financial policy on the correct flow rate borrowings;

6) to acquire stocks in minimal quantities, to avoid overstocking;

6) Consider the basic directions of the net profit, i.e. it should be forwarded to the increase in equity (retained earnings, equity funds);

7) portion of the profits of the enterprise to direct the development, i.e. to increase the stock of capital;

8) to implement part of fixed assets that are not used in the production process.