We have audited the accompanying balance sheet of
Center for the Study of Democracy (hereafter "CSD") as of 31
December 1994 and the related statements of income and expenditure
and changes in financial position for the year then ended. These
financial statements are the responsibility of CSD management; our
responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit based upon International
Standards on Auditing which require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit also
includes examining on a test basis evidence supporting the amounts
and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by
management and evaluating the overall financial statements
presentation. We believe that our audit provides a reasonable basis
for our opinion.
As explained in note 2 and consistent with other
entities in Bulgaria, International Accounting Standard No 29
_Financial Reporting in Hyper-inflationary Economies" has not been
applied despite the hyper-inflationary environment in Bulgaria.
In our opinion subject to the matter discussed in
the third paragraph of this report the accompanying financial
statements present fairly in all material respects, the financial
position of CSD at 31 December 1994 and the result of its
operations and its changes in financial position stated in
Bulgarian Leva for the year then ended in conformity with
International Accounting Standards and the CSD accounting policy
and statutes.
Price Waterhouse
Sofia, Bulgaria , 5 May 1995
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