Submitted by: Submitted by rajadurai
Views: 10
Words: 623
Pages: 3
Category: Literature
Date Submitted: 03/27/2016 06:06 PM
Front page
Front page as audit report
Introduction
Introduction
We are from RTR & Co (AF1908) Charted Accountant which is located at Jalan Ipoh. We are an external auditor for all the company that appoints us. Recently Excel Poultry & Meat Industry Sdn.Bhd. (EPM)which is a subsidiary of PCK Holding had appointed us to be an external auditor for their company. Their company is located at Kluang , Johor.
Principle activity
EPM was established in 1998 to carry on chicken farming and supplying of whole chickens to various outlets in Malaysia. The company was one of the members of the Federation of Livestock Farmers’ Associations of Malaysia (FLFAM).
Role of an external auditor
External auditors are independent audit professionals who audit the financial statements of a company, legal entity or organization. There are expected to express an opinion on whether an entity’s financial statement are free of material misstatements and are a true and fair representation of actual financial position.
The external auditors primary responsibilities are to :
* Identify items that have a reasonable possibility of causing the financial statements to be materially misstated
* Design and execute tests to determine whether such mistatements have occurred
* In certain public company audits, test the effectiveness of internal control over fianncial reporting.
Audit planning
Audit planning is a three-step interactive process undertaken by the external auditor, and evaluated by the audit committee, each audit cycle. Audit planning as defined in International Standard in Auditing (ISA) includes:
* Obtaining and understaning of the entity, its environment and its internal control system
* Assesing the risk of material misstatement in the financial statements
* Designing audit procedures commensurate with the assessed level of risk
Audit process flow
Understand the business ,its control information flow
Understand the business ,its...