Question

1) Any working has been omitted in <A000 Lead> wp?

What is the population on the omitted working above mentioned?

(Assumed none of credit balance in any relevant item)

2) In <A002 Consultant fee> wp, do you determine any insufficient audit workdone?

3) Given below 2 working papers' lead schedule summary:-

i) Any other inconsistency between the working papers?

Lead schedule for expenses wp <A000>

DESCRIPTION REFERENCE AS PER CLIENT AUDIT ADJUSTM

Agent fee Untested, below TE<RM 330,000 198,000

Sub-con Untested, below TE<RM 330,000 329,500
Director emoluments < refer to W000> 92,000
Salary, bonus & allowance < refer to W000> 2,908,000

Lead schedule for payroll wp <W000>

DESCRIPTION REFERENCE AS PER CLIENT AUDIT ADJUSTM

Director emoluments < refer to W002> 92,000 RJE 1

Sub-con Untested, below TE<RM 330,000 329,500
Salary, bonus & allowance < refer to W001> 2,908,500
 Answer

1) Total untested is >RM3300k ; need to be do fur

Population for untested item is

2)
Item 4 is only vouched to JV without further va

3)
i) There is no RJE 1 made was showing in <A000>
Salary, bonus & allowance amount is not consis

AUDIT ADJUSTMENT AS PER AUDITOR

Dr Cr

198,000
329,500
92,000
2,908,000

AUDIT ADJUSTMENT AS PER AUDITOR

Dr cr

8,000 100,000
329,500
RJE 1 8,000 2,900,500
ested is >RM3300k ; need to be do further testing

n for untested item is 323,063.00

only vouched to JV without further valid supporting document.

o RJE 1 made was showing in <A000> wp

nus & allowance amount is not consistent in <A000> & <W000> wp
 Question

1) In <V001 Custom duty and freight>, any item has been omitted

2) In <V009 Tools and consumables> wp, any mistake you able to find?
Answer

1) IDEAS HISTORY for KEY ITEM

2) - IDEA HISTORY with no control total

- Item selected with wrong quantity compared to sampling calculator
 Question

1) Please find out the mistake in below working paper

Client Name : ABC Sdn Bhd

BALANCE SHEET DATE : 31 DECEMBER 2021
NATURE OF WP : REPAIR AND MAINTENANCE

Additional items

DATE Account REF.

1 3/4/2021 Upkeep of Motor Vehicle PC2103/008 CS-189888

2 4/19/2021 Upkeep of Equipment INV-26313 PV2105/059

3 7/19/2021 Upkeep of Machinery 2107044 PV2108/049

4 4/14/2021 Upkeep of Machinery CH003345 PV2105/022

5 4/14/2021 Upkeep of Machinery CH003346 PV2105/022

Basis of selection:
Above Trivia RM 27,550

Audit workdone:
1 Sighted to 3rd party original invoice
2 Sighted to payment voucher
3 Sighted to acknowledged delivery order
4 Sighted to bank statement
5 Sighted to purchase order
6 Sighted to cash sales
7 Sighted to approval form generated by system
k Casting checked
! Agreed to wp/lead
c Traced GL

Findings:
Expenses capital in nature 164,855.00
Conclusion:
The above objective had been achieved. We are satisfied that all repair and maintenance expenses are non-capital in nature exce
 DESCRIPTION AMOUNT (RM) Workdone
Success Service & Maintenance Sdn Bhd 28,200.00 26
Repair for Axia - bulb H4

Four-Up (Malaysia) Sdn Bhd 37,075.00 12347

To purchase 13 units of air-conditioner & installation fee

ITG Machinery Sdn Bhd 27,730.00 12457

Forklift - maintenance of 3 units of engine

Coolhub Engineering Services Sdn Bhd 127,780.00 1247

To purchase of 1 unit of packaging machine

Coolhub Engineering Services Sdn Bhd 38,630.00 1247

Checking & repairing neck machine, motor, hydraulic

259,415.00
k
maintenance expenses are non-capital in nature except for the above item found, however, capital in nature amount is immaterial and subject to r
Answer

Capital acquisition item.

However total amount is immaterial.
To put in SUM
Conclusion need to be update
mmaterial and subject to record in SUM.
 Information given:

During the course of audit, we have noted that:-

Local purchase basically will be delivered within 2-3days
Farthest purchase destination is from Japan, with the shipping term of CIF, taking approximately 2

TE: RM320,000
Trivia: RM26,700

Please find out all the relevant mistakes in below workings

CLIENT: XYZ Sdn Bhd

BALANCE SHEET DATE: 31 DECEMBER 2021
NATURE OF W/P : PURCHASE CUT OFF TEST

Objective To ensure that the purchases and liabilities are properly taken u

Source Goods received note ("GRN") which are pre-numbered in seque

Basis of Selection Last 2 weeks of purchases incurred before year end and first 2 w
- Before year end : 18 December 2021 to 31 December 202
- After year end : 1 January 2022 to 14 January 2022

Delivery Cycle Purchases

Overseas purchases

Audit Procedures

1. Match the GRN with suppliers' delivery orders. Ensure that the GRNs are prenumbered in sequential ord

2. Trace to the suppliers' invoices and match the quantity and value. Examine the date of receipt, acknowle

3. Ensure that the posting to the purchases and payables ledger is in the appropriate financial period.

4. Check posting to the inventory records and general ledger.

CUT OFF TWO WEEKS BEFORE FINANCIAL YEAR ENDED 31ST DECEMBER 2021
 GRN
GL posting Date Ref No Invoice Date
number

1 120067 18/12/2021 I19AD85 26/12/2021

2 120069 19/12/2021 I19AC54 20/12/2021
3 120070 21/12/2021 I19AB54 19/12/2021
4 120071 21/12/2021 I19AB48 11/12/2021
5 120072 23/12/2021 I19AB23 23/12/2021
6 120073 24/12/2021 I19AB53 06/12/2021
7 120074 29/12/2021 I19AB46 11/12/2021
8 120075 31/12/2021 I19AB67 30/12/2021

CUT OFF TWO WEEKS AFTER FINANCIAL YEAR ENDED 31ST DECEMBER 2021

GRN
GL posting Date Ref No Invoice Date
number

1 10001 09/01/2022 I19AD77 1/3/2022

2 10002 13/01/2022 I19AD15 1/13/2022
3 10004 14/01/2022 I19AB24 1/1/2022

Audit workdone
1 Sighted to purchase invoice
2 Sighted to K1 form
3 Sighted to bill of lading
4 Sighted to acknowledged delivery order

Findings:-
N1 Missing of GRN due to date of GRN 12068 dated on 11-12-2021 due to the staff wrongly edited of the date. Fur

N2 Summary for misstatement found as above stated

Overtaken of purchase (443,472.23)
Undertaken of purchase 145,920.00
(297,552.23)

Conclusion:-
The cut-off is considered proper other than the immaterial misstatement found, which is subject to pass in SUM.
shipping term of CIF, taking approximately 2 weeks to reach the destination port, from the date of laden

he purchases and liabilities are properly taken up in the appropriate financial period.

note ("GRN") which are pre-numbered in sequential order.

purchases incurred before year end and first 2 weeks of purchases incurred in subsequent year.
end : 18 December 2021 to 31 December 2021
d : 1 January 2022 to 14 January 2022

Country Shipment term

Japan CIF

Audit Procedures

hat the GRNs are prenumbered in sequential order.

nd value. Examine the date of receipt, acknowledgement of receipt, and Company's stamp on the delivery order.

dger is in the appropriate financial period.

er.

MBER 2021
 Description

1 CHEMSTATION DISTRIBUTION SDN BHD

1 SAMCHEM NUSAJAYA SDN BHD
1 FORMOSA CHEMICALS & FIBRE CORP.
1 NAN YA PLASTICS CORPORATION
1 DOW CHEMICAL PACIFIC (SINGAPORE) PTE LTD
1 YU-HER CHEMICAL CORP.
1 UPC TECHNOLOGY CORPORATION
1 NANYA PLASTICS CORPORATION PTE LTD

Description

1 CHEMSTATION DISTRIBUTION SDN BHD

1 SAMCHEM NUSAJAYA SDN BHD
1 TAKASAGI CO.,LTD.

e to the staff wrongly edited of the date. Further checking on GRN12068, DO acknowledged on 11-12-2021 and transaction has been ta

Amount below TE & subject to pass in SUM

found, which is subject to pass in SUM.

Delivery days Remark
2 weeks Risk and rewards transferred at loading port

Remark

Refer below workdone & findings

Refer below workdone & findings

Refer below workdone & findings

Refer below workdone & findings

 DO
Bill of lading
Incoterm acknowledged K1 form date Currency
date
date
- 26/12/2021 N/A N/A 4 MYR
CIP 20/12/2021 N/A N/A 4 MYR
CIF N/A 19/12/2021 N/A 3 USD
CIF 11/12/2021 N/A N/A 4 USD
SG N/A N/A 02/01/2022 2 USD
CIF N/A 04/12/2021 N/A 3 USD
CIF N/A 11/12/2021 N/A 3 USD
CIF N/A 11/01/2022 14/01/2022 23 USD

DO
Bill of lading
Incoterm acknowledged K1 form date Currency
date
date
- 12/31/2021 N/A N/A 4 MYR
- 1/13/2022 N/A N/A 4 MYR
CIF N/A 1/4/2022 N/A 3 USD

2021 and transaction has been taken up in current year GL. Thus, no issue noted.
 Control Transferred in FY

Amount (FC) Amount (RM) 2021 2022

N/A 25,795.00 1 V
N/A 65,950.00 1 V
19,200.00 79,843.20 1 V
197,820.00 823,129.02 1 V
23,109.45 95,696.23 1 V
19,200.00 79,891.20 1
154,437.19 642,613.16 1
83,600.00 347,776.00 1 V

Control Transferred in FY

Amount (FC) Amount (RM) 2021 2022

N/A 145,920.00 1 V
N/A 38,692.50 1 V
13,837.00 57,578.42 1 V
Answer

Title

Jumping of GRN number --> need to fu

No audit workdone

No further documentation on whethe

Risk transferred on 2-1-2022 based on

Shouldn't be taken up in YE2021

Risk transferred on 11-1-2022 based o

Shouldn't be taken up in YE2021

DO acknowledged in 31-12-2021, purc

Findings for the inconsistency found

No conclustion
Recorded in GL FY
Proper?
2021?

Yes Yes
Yes Yes
Yes Yes
Yes Yes
Yes No
Yes Yes
Yes Yes
Yes No

Recorded in GL FY
Proper?
2021?

No No
No Yes
No Yes
RN number --> need to further investigate

ocumentation on whether control was transferred in the correct FY & whether the transaction was properly taken in GL..

ed on 2-1-2022 based on bill of lading;

taken up in YE2021

ed on 11-1-2022 based on bill of lading;

taken up in YE2021

dged in 31-12-2021, purchase to be recognised in YE2021

he inconsistency found
operly taken in GL..