In this part, the students are required toprovide detail explanations on the key learning of what they have experiencesduring the learning process period. It is because, this engagement is new experienceswhich enable the students to utilise their skill in doing audit related work inan industry. There are two key learning that I obtain through the process ofUMT- SALIHIN programme. The explanation of the key learning as shown below:Understanding Step in Preparing an AuditDuring the learning process of courseACT4995, I learned about the process on how to prepare for an audit which isrequire to panning the audit in order to conduct the audit effectively.
Theplanning of audit includes planned risk assessment procedure and plannedresponse to the risk of material misstatement. The auditors need to understandthe nature and extent of planning activities that are necessary depend on thesize and complexity of the company, the previous experience with the companyand changes in circumstance that occur during the audit. Then, the auditplanning should be develop by the auditors which include planned nature,timing, risk assessment, test of control and substantive procedure thatrequired to be performed.
It is to enable the auditor to express an opinion toform standard unqualified audit report for the client’s company. As for me, when I get the company which is Trail Network Sdn Bhd that I need toperform an audit, the first step that I should know is understand the nature ofthe company also with all the important information before performing an auditin order to avoid any mistake that would be happen during the audit work. Then,I must draft the working paper with regard the pilot project template given byEn. Mahdi after gather all of the information regarding the company’s financialstatement. The entire information must be review, analyse and evaluate fromprevious year and current year accounting record. In the working paper, the setof planning materiality level is using a fixed percentage method or based ontable of scale basis in turnover and total assets depends on Salihin CharteredAccountant guideline and this two method must be choosing whichever is lowerbetween them.
The amount of substantive procedure are depends on the set ofplanning materiality in several scenario which is walkthrough and TOC,walkthrough and no testing. If it has error occurred, it must bereclassification the error in balance sheet and income statement which must berecognize in the same year which I have audited. The transaction and adjustmentmust be attaching the document sales or agreement rent building or purchasingassets.
Besides the working paper that have beenprovided by En. Mahdi, I also learned to do the correspondences which are:1. Audit Planning Memorandum2. Engagement Letter3. Bank Confirmation4.
Director Remuneration And Shareholding5. Director Confirmation 6. Letter of Presentation7. Appointment Letter 8. Summary Review Memorandum In addition, I have learned to do the auditreport which the auditor must choosing the appropriate audit report to issue anopinion on the validity and reliability of a company’s financial statement. Thegoal of an auditor’s report is to document a reasonable assurance that acompany’s financial statements are free from error.
The auditors’ report hasthree main types which are unqualified report opinion, qualified report opinionand adverse report opinion. Within the report, I learned that the auditor canshare any reservations about the condition of the company’s finances orrelevant additional information. The reservation will arise if the auditorsdisagree with something found in the financial statement.
The auditor’s reportmust adhere to the accepted standard and regulations. A typical auditor’sreport will state:1. The company that has been audited and what theiraccounting method is2. The responsibility of the auditor and their report3.
Reservation (if any)4. Conclusion5. Any additional information6. A management report7. The date and auditor’s signatureUnderstanding the Quality of TeamworkAll teams are group, but all groups are notnecessarily teams. Groups might share common characteristics or be related toone another in some way but a team share a goal, regardless of any mutualsupport traits.
As for me, when I have been given a task to complete with ateam member, it already make me feel facilitate to complete the task required.The work done by a group of people will become more effective and high quality.During the academic period, the first task that I need to do is to re-audit thecompany within a group of 5 person. Itis after the learning session of property, plant and equipment and accountreceivable. We need to apply the knowledge that we get through the learningsession by En. Mahdi. The company that we choose at that time is Arkitek Ekhwanwhich we need to re-audit by using the template of ‘Pilot Project’ given by En.
Mahdi. We need to re-audit the property, plant and equipment and accountreceivable of Arkitek Ekhwan. We divide the work equally to do the task whichis three of us audit on property, plant and equipment and another two audit onaccount receivables, then we will teach each other what and how we do it. For the next task, I have been given a taskto do full audit on a company with a partner. The company that I need to auditis an active company, Trail Network Sdn Bhd which is it do have quite a lot oftransaction with a huge amount of money. Because of I need to audit the companywith only to person in a group, it make me and my partner struggle a lot todone a real practices of audit to that company.
We need to do a lot ofrevision, ask to the former student of this course, ask our supervisor anddiscuss among us. Before this we only learnt the theoretical concept of anaudit but for this task we need to do the real practices of an audit which wedo not know how to do that in order to complete it on time. Without the teamwork from the team member onthat time, we cannot manage to finish it because the task is quiet hard sincewe do not how to apply it to the real practice of audit. The quality ofteamwork that I get through the academic period is really precious since as anauditor the teamwork plays an important role not only within the partners, managersbut also the entire team including trainees which expected to apply an equallevel of scepticism when auditing a client.
This calls for continuousprofessional education and training of staff because in fact, attracting andretaining the right talent is a top priority for most audit firms. Therefore,it enable me to have an early experienced before got to an internship programme.