BEIGE SDN BHD, CAs

Terengganu, Malaysia

AJ COMPANY 14 Jan 2024

Lot 82597 Jln Batu Rakit,
Kg Alor Jambu,
21030 Kuala Terengganu,
Terengganu.

Dear Mr/Mrs/Ms:

This will confirm our understanding of the arrangements for our audit of the financial statements of
AJ Company for the year ending 31 December 2023.
We will audit the company’s financial statements for the year ending 31 December 2023, for the
purpose of expressing an opinion on the fairness with which they present, in all material respects, the financial
position, results of operations, and cash flow in conformity with accounting principles generally accepted in
Malaysia.
We will be carrying out our audit according to compliance with generally accepted auditing standards
in Malaysia. Those standards require that we obtain reasonable, rather than absolute, assurance that the
financial statements are free of material misstatements, whether caused by error or fraud. Accordingly, a
material misstatement may remain undetected. Also, an audit is not designed to find fraud or errors that are
insignificant to the financial statements, therefore it might overlook misstatements that are less significant
than this threshold that could be caused by fraud, financial reporting that is false, or asset theft. If, for any
reason, we are unable to complete the audit or are unable to form or have not formed an opinion, we may
decline to express an opinion or decline to issue a report as a result of the engagement.
Although an audit includes obtaining an understanding of internal control sufficient to plan the audit
and to determine the nature, timing, and extent of audit procedures to be performed, it is not designed to
provide assurance on internal control or to identify significant deficiencies. However, it is our duty to make
sure the audit committee is informed of any serious flaws that are discovered.
The financial statements are the responsibility of the company’s management. Management is also
responsible to (1) establishing and maintaining effective internal control over financial reports, (2) identifying
and ensuring the company complies with the laws and regulations applicable to its activities, (3) making all
financial records and related information available to us, and (4) providing to us at the conclusion of the
engagement a representation letter that, among other things, will confirm management’s responsibility for the
preparation of the financial statements in conformity with accounting principles generally accepted in
Malaysia, the availability of financial records and related data, completeness and availability of all minutes of
the board and committee meetings, and to the best of its knowledge and belief, the absence of fraud involving
management or those employees who have a significant role in the entity’s internal control.
The timeline of our audit and the assistance your staff will provide, including schedule preparation and
account analysis, are detailed on a separate attachment. The completion of our audit will be assisted by the
prompt completion of this job.
Our fees are based on the time needed at various levels of responsibility, in addition to actual out-of-
pocket costs, and are invoiced when the work is completed. Invoices are payable upon presentation. We will
notify you immediately of any circumstances we encounter that could significantly affect our initial estimate
of total fees of RM 12,300.
If this letter correctly expresses your understanding, please sign the enclosed copy and returned it to
us. We are grateful for the chance to assist you.

Accepted: Yours very truly,

By, Fatihahmil
Date: Partner.