Could the Audit be completed soon without any qualification? Justify your answer.

The auditor’s report is considered an essential tool when reporting financial

information to users, actually in business. It is mandatory for all companies under the
Companies Act 1965 to perform the statutory audit. In this case, the company Delima
Enterprise Sdn Bhd (DESB) was required to comply with the Companies Act 1965 to
prepare the Audited Financial Statement and to meet the banker’s request to process
facilities application. To answer the question, it is yes, the audit can be completed soon
without any qualification if Encik Zayed and Puan Hashimiah could be attends to the
outstanding matters objectively.

Encik Zayed and Puan Hashimiah should discussed objectively with the auditors
and be guided by the auditors for the appropriate solutions. It was noted from the audit
findings that several transactions with significant amount were wrongly recorded and due
reconciliation was necessary to identify and make appropriate adjustment to the accounts.
Encik Zayed should be the person responsible and give cooperation with the auditor.
Because he and Puan Hashimah are not familiar with the Accounting Standards and
Companies Act of 1965, they must provide accurate documentation and provide all the
information to answer the entire question for the aim to help with the review as soon as
possible. In addition, they need to collect and distribute documents, provide evidence to
auditors for any transactions conducted using company funds. If they are not fully
accountable and totally dependent on the auditor, it will take a long time to complete the
process. Besides that, they also should not fully rely entirely on Cik Amy, who is the new
finance executive because she has no prior experience in the field. Additional note, based
on the case given, Puan Hashimah acted as the Chief Operating Officer, and apparently,
Cik Amy as the Finance Executive, pledged for resources of the accounting and financial
matters, and the preparing of accounts. In order to have a clear future, Cik Amy, who has
no work experience, will gain more knowledge at Puan Hashimah and the department's
predecessors to begin the audit process. The person in charge should investigate all
supporting documents provided by the former staff and classify human error and
determine any information left. In addition to reducing the time spent by auditors, the
organization's audit, management, and administration departments should also participate
unconditionally in completing the audit process.
Conclusion

As a conclusion, we have learnt how to relate the theories into practices in a real
life situation from the issues encountered by Delima Enterprise Sdn Bhd (DESB). The
directors surely need to equip themselves with necessary skills and knowledge before
they incorporate the company into a private limited company in term of management and
leadership. The chief Financial Officer, Controller and accounting department personnel
should not have access to modify general ledger accounts or change mappings for these
accounts. Normally these changes should be made by IT personnel after approval.
Financial statement should be approved by supervisory personnel at a higher authority
level than person preparing the financial statements. As a senior manager of DESB, its
main responsibility is to ensure the effective leadership and management of the company
and achieve the company's long-term goals. It also monitors and evaluates employee
performance, approves the hiring of employees, and oversees the company's operations. It
also creates and maintains a good relationship with the managing director, acting as a
spokesperson without the managing director. Following the recommended standard
operating procedures, the Chief Operating Officer will oversee all operational functions
of DESB. For example, it is responsible for managing all hands-on operations strategies
and promoting these tasks throughout the operation. And the President & CEO are
responsible for all activities in the absence. It works closely with the President & CEO to
develop and complete goals and strategic plans set by the company's board members and
executives.