a. For every of the problem above, explain the feasible impact in the direction of the enterprise and recommend the applicable advice for every problem that may improve the control of PPE in Kicap Manis Berhad. b. suggest the considerable audit techniques that must were finished to obtain evidences relevant to PPE in the course of the 12 months ended 31 December 2019. c. In view of the troubles raised for the duration of the audit of PPE for Kicap Manis Berhad, how could these issues have affected your audit work?
You are the supervisor accountable for the audit of Kicap Manis Berhad, a listed agency, for the 12 months ended 31 December 2019. The major enterprise activity of Kicap Manis Berhad is the manufacture of farm machinery. The audit paintings has been completed, and you are reviewing the operating papers in order to draft a file to those charged with governance. during the audit of property, plant and gadget (PPE), the audit team located no cloth misstatement but the subsequent issues have come to your interest.
It changed into found that authorization had not been won for the buy of office equipment with a fee of RM315,000. The officer in rate of the buy claimed that the management has conveyed their settlement with the buy in the management team month-to-month meeting, but the audit team has now not been provided with such mins of assembly even after numerous requests.
The purchaser is the use of an internally evolved PPE gadget, PropertyCare, to hold the records of the PPE. It became observed that due to programming trouble, the software of a few PPE prices at acquisition and
In the previous years, the organisation purchased several landed properties and hire them out as a supply of their condominium earnings. The properties have been revalued at the yr-stop in accordance with FRS one hundred forty – funding belongings. As at 31 December 2019, the residences have been recognized on the stability sheet at a truthful fee of RM10.5 million, and the overall assets are RM245.2 million. An outside valuer has been appointed to decide truthful fee for each assets. but, it has come to your knowledge that the valuer has simply these days established its provider in October 2019.
The Board of directors resolution dated 30 October 2019 said that the business enterprise has agreed to gather one bus for the reason of transporting the people from their houses to the enterprise’s manufacturing facility. The value of acquiring the bus as stated in the decision became about RM450,000 and the bus changed into to be bought from S-Volvo Malaysia Sdn. Bhd. The audit crew, but, found that the bus became purchased at a cost of RM580,000, way above the agreed quantity.
Required:
a. For every of the problem above, explain the feasible impact in the direction of the enterprise and recommend the applicable advice for every problem that may improve the control of PPE in Kicap Manis Berhad.
b. suggest the considerable audit techniques that must were finished to obtain evidences relevant to PPE in the course of the 12 months ended 31 December 2019.
c. In view of the troubles raised for the duration of the audit of PPE for Kicap Manis Berhad, how could these issues have affected your audit work?
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