S59288 ACT3733-I DiscussionQuestion2

By fzlyn.abdmlk | Updated: Oct. 28, 2023, 1:29 p.m.

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WELCOME
TO
ACT 3733-I
DISCUSSION QUESTION 2
AUDIT PROCESS
NURUL FAZLIYANA BINTI ABDUL MALEK
(S59288)
WHAT IS AUDIT PROCESS?
The audit process is a...
 Systematic and objective examination of financial statements, records, and internal controls of an organization.

Typically conducted by an independent auditor or audit firm.

Its primary goal is to provide reasonable assurance that the financial information presented in the organization's financial statements is accurate and fairly represents its financial position, performance, and cash flows.
KEY STEP
PROCESS...
AUDIT
Engagement Planning.

Auditors define the scope and objectives of the audit and create an audit plan.

1
Risk Assessment

2
Auditors evaluate the internal controls and assess the risks of errors or fraud in financial statements.

Audit Testing

3
Auditors conduct tests to verify the accuracy of financial transactions and account balances.

IS IT FINISHED?
DEFINNITELY NOT YET !
?
?
NO
WORRIES!
LETS CONTINUE...
4. Audit Documentation
Detailed records are maintained to support the audit findings.
5. Communication with Management

Auditors collaborate with the organization's management to address questions and resolve discrepancies.
Audit Reporting

Auditors issue an Auditor's Report with their opinion on the fairness of the financial statements.

6
Follow-up and Recommendations
7
Auditors may provide suggestions for improving internal controls and financial reporting processes.

Listed Company...
FARM FRESH BERHAD
Key Audit Matters?

The key audit matter highlighted in Farm Fresh Berhad is the....
 "Valuation of biological assets,"

Refers to the assessment of the value of cows, goat herds, and bulls held by the Group and the Company.

This matter is of utmost significance due to the substantial value of these assets, with RM92 million held by the Group and RM34 million held by the Company.

The audit focuses on the methods used for valuation, including the "replacement cost approach" and the "comparison approach," as well as the judgment and complexity involved in determining fair values.

The accuracy of this valuation directly impacts the financial statements and, as such, is a critical area for audit scrutiny to ensure financial transparency and accuracy for stakeholders and investors.
Farm Fresh's Auditor's Report plays a crucial role in assessing the company's financial health and reporting practices, providing transparency and assurance to stakeholders.

The Key Audit Matters highlighted in the report offer insights into the most significant challenges and risks faced by Farm Fresh during the audit, such as inventory valuation.

By addressing these key matters, the Auditor's Report contributes to financial transparency and accountability, building trust among shareholders, investors, and the public in the accuracy of the company's financial statements.
Conclusion............
THAT'S ALL,
THANK YOU FOR WATCHING.

S59288 ACT3733-I DiscussionQuestion2

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