Is it a qualify auditor?

How to read annual report? A lot of professional said read annual report help you select a good stock. You can find a company holding a lot of cash in hand or maybe find them whether is over borrowings. So, every one become a qualify auditor.

In my stupid opinion, how to value a company must refer the business whether is monopoly or selling the sole idea for people life. If someone create such a company, the value at least 50 time of P/E because that will not ahead by anyone. Furthermore I also must determine whether the business gain any pioneer status because that is not easy to step in by any new competitor. Normally, the company also can be valued higher and gain finance institution lend money to support the business. If the said business easily build up by cash, that this business become valueless. Like development of houses business, that is easy build up by cash. So, the offer price cannot set higher in the IPO. Banker also not easy finance big amount for the project.

Currently a lot of company management like to join in to bond market to call up additional funds for business and they also like to issue Islamic bonds to call up the working capital. How many people can tell me that KLSE's listed company already issued how many trillion of Islamic bonds? How many can sustain the repayment by such borrowing? Is it Central bank has been set a rules and regulation to control it? Is it auditors can summary the details and compile it as data base for reference. Such warning note should be highlighted into report. Not like someone said so, only read the report figure and comment something in the newspaper with no sense.

So, to be qualify as auditor not only must know the annual report. He/she also must well know the necessary or unnecessary thingy in the business. Not only claim someone borrow money, he also must know the repayment ability as well as the business in the company whether can last long or sustain.