DPMM NEGERI KELANTAN (REG. NO.
: 196/56-3)
31 December, 2012
AUDIT PLANNING MEMORANDUM
Prepared by: Hareez
Reviewed by:
Date: 01/13
Date: 01/13
-----------------------------------------------------------------------------------------------------------------1. INTRODUCTION
We have been re-appointed as the auditors for Dewan Perniagaan Melayu Malaysia
Negeri Kelantan (Dewan) for financial year ended 31 December 2012.
2.
CLIENTS BACKGROUND
The principal objectives of the Dewan are as per note 1 audited account.
3.
ASSESSING ENGAGEMENT RISK
Before deciding to accept the appointment of this audit engagement and to facilitate
us in developing an appropriate audit plan, we have considered the following factors
relating to engagement risk.
Management Integrity
Tuan Hj Mohd Rosli B. Ismail as the Yang Dipertua of the Dewan is responsible on
Dewans affairs and financial management headed by the treasury, En. Kamaroz
Zaman B. Mohd Salleh. Both of them are among successful businessmen in Kelantan.
Organisation and Management Structure
The Dewan management structure is systematically organized and the management
style and capacity is consistent with the size and the growth of its business.
Conclusion
After considering the above mentioned factor, which affects our engagement risk, we
are on the opinion that the engagement risk can be classified as medium risk client.
4.
CLIENT CONCERNS AND SERVICE OBJECTIVE
In the current engagement, we are to perform an audit for the year ended 31
December 2012 and will be conducted in accordance with approved auditing
standards, guidelines and compliance with the relevant International Accounting
Standard (IAS) & MASB and Akta Pertubuhan, 1966.
For any weaknesses that we noted during our audit, a Management Letter will be
issued.
DPMM NEGERI KELANTAN (REG. NO.: 196/56-3)
31 December, 2012
AUDIT PLANNING MEMORANDUM
Prepared by: Hareez
Reviewed by:
Date: 01/13
Date: 01/13
------------------------------------------------------------------------------------------------------------------
5.
OVERVIEW OF AN ACCOUNTING SYSTEM
The accounts of the Company have been prepared under the historical cost
convention.
For the year under audited, Mohd Suari bin Hj. Che Harun maintains prime
documents and all financial affairs.
6. CONTROL ENVIRONMENT
Reliance can be placed on the internal control for the following reasons:a) Different staff maintains the books and records
b) There is proper segregation of duties.
7. SUMMARY OF RISK IDENTIFIED AND AUDIT RESPONSES
Client appears to be honest and the representation can be relied upon.
Our audit response for Profit and Loss items and Balance Sheet items will focus on
compliance and substantive test.
8. PRELIMINARY ANALYTICAL REVIEW
Results of Operations
Ref.
Proposed
2012
RM000
Income
(a)
257
232
25
10.8
Expenses
(b)
304
(289)
15
(5.2)
(47)
(57)
Operating (Over)/ Under
Audited
2011
RM000
Inc./(Dec)
RM000
Major Balance Sheet Items
Cash and Bank Balances
(c)
143
54
89
>100
Other Debtors
(d)
45
19
26
>100
DPMM NEGERI KELANTAN (REG. NO.: 196/56-3)
31 December, 2012
AUDIT PLANNING MEMORANDUM
Prepared by: Hareez
Reviewed by:
Date: 01/13
Date: 01/13
-----------------------------------------------------------------------------------------------------------------Other Creditors and Accruals
(e)
388
224
164
73.2
Fixed Assets
(f)
373
372
0.3
Investment
(g)
1069
1,069
a) This represents income received from Members fee, rental, DBCs income, other
income and dividend from shares.
b) This represents administrative expenses and mainly with salaries and wages,
management expense, traveling & accommodation, companys activities, legal
and professional fees.
c) This represents cash in hand and at BIMB and CIMB.
d) This represents mainly outstanding rental, others debtor, utility and rentals
deposit.
e) This represents amount owing to rental deposit, Permodalan deposit, employees
fund benefit, PERKESO and etc.
f) This represents net book value for fixed assets.
g) This represents investment on Konsortium Dewan, Sykt. Permodalan DPMM
Kelantan Sdn. Bhd., Permodalan DPMM Kelantan Sdn. Bhd., Haji
Kamaruzzaman (Koperasi), DRB-HICOM Berhad, Jerneh Asia Bhd and Johor
Land Bhd.
9. ASSESSMENT OF AUDIT RISK
We have identified the following audit risks:
Area
Cash and Bank Balances
Risk
Cash in hand and at bank fairly stated
Other Creditors and Accruals
Other debtors
Investment
Amounts fairly stated
Fixed Assets
Verification of ownership and existence
Net book value fairly stated
All fixed assets are reflected in accounts
DPMM NEGERI KELANTAN (REG. NO.: 196/56-3)
31 December, 2012
AUDIT PLANNING MEMORANDUM
Prepared by: Hareez
Reviewed by:
Date: 01/13
Date: 01/13
------------------------------------------------------------------------------------------------------------------
Profit and Loss account
Amounts fairly stated
Accrual concept properly follows
Recognition of capital and revenues expenses
10. COMPLIANCE AND SUBSTANTIVE PLAN
In view of the management responses on the internal control that we can rely on it,
we will perform a compliance test and follows with substantive test on particular
areas as follows:
ITEMS
TEST
Cash in Hand and at Bank
Test on bank reconciliation.
Obtain direct confirmation.
Alternatively, used bank statement of
account as confirmation from third party.
Other Debtors and Creditors
Creditors circularization on selected
sample.
Alternatively,
test
on
creditors
reconciliation, which supported with
statement from creditor and vouched on
any supporting documents.
Fixed Assets
Reasonable test on NTA.
Profit and Loss Account
We would apply analytical reviews
procedures on incomes and expenditures.
Material or unusual variations from last
year would be raised with client.
Transaction Test
To perform reasonableness
emoluments.
test
on
DPMM NEGERI KELANTAN (REG. NO.: 196/56-3)
31 December, 2012
AUDIT PLANNING MEMORANDUM
Prepared by: Hareez
Reviewed by:
Date: 01/13
Date: 01/13
------------------------------------------------------------------------------------------------------------------ To perform reasonableness test on income
and expenditure item to ensure that the
amounts fairly stated.
11. MATERIALITY SCOPE
Total
Assets Net Operating Loss (RM) Basis
(RM)
1,630,588
1%
(47,177)
5%
Amounts (RM)
16,305.88
(2,358.85)
Since this is our fourteenth year audit for this company, we set materiality limit at
RM 16,305.88.
.
12. DEADLINE, BUDGETS AND STAFFING
12.1
We have planned for an audit schedule as follows:
Date
Commencement of field work
Complete of audit field work
Finalization of audit file
Review by Principal
Review by Atarek
12.2
Budgets
For Dewan fees estimated at RM3,000.
12.3
Staffing
Principal
Staff in charge -
Zuhair Bakri Bin Abu Bakar (ZZ)
Ahmad Faris Bin Hashim (Faris)
01/13
02/13
02/13
/13
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