Al Emperator Car Services

P.O Box 94545, Al Lehbab Dubai, UAE

Audit Report on Collection and

Reporting Of Revenues By
MY Global Finance & IT Consultants

RA05-023A

June 03, 2023

 MY Global Finance and IT Consultants
Office 22, 33rd Floor, Prime Tower, Burj Khalifa Street, Business Bay, Dubai, United
Arab Emirates

To the ENOC Retail LLC

Ladies and Gentlemen:

In accordance with our engagement letter dated 01-May-2023, my office (firm) has examined
how the Emperator Car Services (auditee) is accounting for and safeguarding the service fee
revenue it receives.

The firm, an independent entity, has inspected the revenue related accounts, receipts and
vouchers to carry out our audit procedures in accordance with international auditing standards.
The Company generates most of its revenue from services provided to car owners in lieu of
decoration and upgradation of vehicles, which customers must pay at the spot. Audits such as
this provide a means of ensuring that the revenues are properly accounted.

The results of our audit, which are presented in this report, have been discussed with officials
from the company, and their comments were considered in the preparation of this report.

I trust that this report contains information that is of interest to you. If you have any questions
concerning this report, please e-mail my audit firm at munim.anis@mycaglobal.com or
telephone my office at 971-56-1230675.

Very truly yours,

Munim Anis FCCA, ACA, ICAEW, UAECA.

Report: RA05-023A
Date: June 03, 2023
 MY Global Finance and IT Consultants
Office 22, 33rd Floor, Prime Tower, Burj Khalifa Street, Business Bay, Dubai, United
Arab Emirates

Table of Contents
AUDIT REPORT IN BRIEF ....................................................................................................... 1

Audit Findings and Conclusions ................................................................................................. 1

Audit Recommendations............................................................................................................. 2
Agency Response ........................................................................................................................ 2

INTRODUCTION. ....................................................................................................................... 3

Background ................................................................................................................................. 3
Objective ..................................................................................................................................... 3
Scope and Methodology ............................................................................................................. 4
Annexures
 Audit Report on
Collection and Reporting of Revenues

RA05-023A

AUDIT REPORT IN BRIEF

This audit determined whether the Company is correctly accounting for and safeguarding
the revenue it receives.

The Company generated AED 16,407.00 revenue since inception in May-2022. Since
inception most part of the year the Company was not operational due to number of different
requirements like legal, regulatory and operational. The company has formally recorded its sales
in the month of Feb-2023 (22-Feb-2023), where the total monthly revenue was AED 485.00
only. Subsequently, AED 4,667.00, AED 6,080.00, AED 1,930.00 in the months of Mar-23,
Apr-23 and May-23 (cut off 10-May-2023) respectively. Refer to Annexure 1, for tabulated
depiction.

Audit Findings and Conclusions

Overall, the Company has correctly accounting for the revenue it receives. The Company
generally charges and collected diverse service charges depending on the customer need and
requirement, and then forwarded the funds to the owners of the Company. We also found that the
Company deals most of the time in cash only.

We found, however, that the Company does not adequately safeguard the fee revenue it
receives. We also found that the Company did not issue receipts of the revenue received. In
addition, we found that the Company does not have a business bank account and POS terminal
for electronic payments.

Audit Recommendations
To address these issues, we make following recommendations, including that the Company should
ensure that:
• A daily summary of cash received should be maintained and reconciled against sequentially-
issued receipts.

• Company should apply for the POS terminal and business bank account.

Managment Response

In its response, the Company agreed with all of the audit’s recommendations.

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 Audit Report on
Collection and Reporting of Revenues

RA05-023A

INTRODUCTION
Background

The Company is a service based organization providing its services to vehicle owners along
with selling new and old decorative items for beautification of cars. Company also deals in new
and old tires which can be changed also in the premises. Our firm was appointed by the
management of the Company to carry our review on the reporting of revenues and accounting of
receipts.
Objective
To determine whether the Company is correctly accounting for and safeguarding the
application fee revenue it receives.

Scope and Methodology

The scope of this audit is the period from May-22 till May-23. To gain an understanding
of the Company’s operations and its controls over revenue, we met with managment from the
Company. We also conducted walk-throughs and observations, and attended a hearing. In addition,
we reviewed the Company’s internal policies, procedures, and reports. Finally, we also counted
cash in hand available in premises safe.
We also confirmed whether the funds received on daily basis were properly accounted and
deposited to the company safe. To determine whether the managment was depositing collected
funds in a timely manner, we compared the dates the funds were received (receipts were issued)
against the dates that the funds were forwarded for deposit.
The audit was conducted in accordance with international auditing standards (ISA) and
directives issued by International Internal auditing standards IIA, tests of records and other
auditing procedures considered necessary.

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Annexures
Annexure 1
Following table depicts the total sales revenue from 01-May-2022 till 10-May-2023, where
opening date is 22-Feb-2023 and cut off date is 10-May-2023.
Month-Year Gross Sales In AED
May-22 0.00
June-22 0.00
July-22 0.00
August-22 0.00
September-22 0.00
October-22 0.00
November-22 0.00
December-22 0.00
January-23 0.00
February-23 485.00
March-23 4,667.00
April-23 6,080.00
May-23 1,930.00
Total for the Period AED 13,162.00

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