CASE NO.1 : A DELIMA
Delima Enterprise it conducted trading and supplying related products including manpower supplies to the oil and gas industries. Since 2006, the company had been awarded with several engineering projects and its cumulative revenue for 2004 and 2005 were nearly RM1.0 million and RM1.7 million. In May 2006, the company had secured a contract worth RM750, 000 to be implemented over duration of six months. Due to shortage of funds, the company had submitted applications to Malayan Banking Berhad and CIMB Bank Berhad for banking facilities totalling RM 1 million. The banks required the company’s Audited Financial Statements for the last two years and this was when Encik Zayed realised that the company had not performed the statutory audit. Accounting Systems, Information and Records
All accounting records were maintained using the standard financial software ‘MYOB’. The programmed was not integrated because the data was not processed and generated automatically between several modules. The sales invoice were manually produced when orders were received and the job was completed, while the manual sales invoices were not pre- numbered. One copy of the sales invoices attached to the delivery order for the customer and the other copy used to update the sales records. Collections from the customers were received via cheques and cash and not all payments from customers were received in full. Monthly Statement of Accounts was not sent to customers on a monthly basis. It was done as and when the payment had been long outstanding. The purchase orders were manually prepared and not pre-numbered. The original PO was issued to the suppliers or service providers and a copy was retained for record and GL system update. The employees prepared their timesheets when they arrived at work and recorded the time they leave the office manually. The company paid salary their general workers in cash on a weekly basis. Audit Findings and...
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