Professional Documents
Culture Documents
(AF 0147)
KINO MACHINERY SALES & SERVICES SDN. BHD.
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2016
COST OF SALES - WORKING PAPERS
Notes
1
Purchases
Sample selection
method :
Objective :
Non-statistical
Obtain comfort that the purchases have been accurately captured and that the transaction occurred.
Define
misstatement :
The total amount in the invoice not tally with the general ledger or no invoice or any supporting documents for the transactions.
Determine
sample size :
Total sub-population :
Performance materiality :
Maximum tolerable misstatement :
Estimated misstatement :
Tolerable misstatement :
Precision :
Required level of assurance :
Sample size :
Sample selection
method :
Haphazard
Required Assurance
Low
Moderate
High
10%
15
23
41
8%
21
30
60
No.
Suppliers
Inv no.
Inv date
Description
XIC ENTERPRISE
KN20150701l
7/14/2015
air blower
KMPCV15/07/00CASH
7/24/2015
XIC ENTERPRISE
KN20150801I
8/4/2015
air blower
1508/014
8/11/2015
temperature controller
KMPCV15/08/00CASH
8/17/2015
KMPCV15/08/00CASH
8/21/2015
socket
KMPCV15/08/00CASH
8/31/2015
KMPCV15/09/00CASH
9/9/2015
on off switch
RACO ELECTRICAL
KMPCV15/09/00CASH
9/30/2015
10
KMPCV15/10/00CASH
10/6/2015
tape
11
KMPCV15/10/00CASH
10/21/2015
12
KPMCV15/10/00CASH
10/30/2015
13
KPMCV15/11/00CASH
11/23/2015
glue
14
KMPCV15/11/OOCASH
11/23/2015
15
WAI KEE
INV01551
11/30/2015
jv-jh91 91 liter
16
KMPCV15/12/00CASH
12/17/2015
elcb
17
RACO ELECTRICAL
KMPCV15/12/00CASH
12/17/2015
fan motor
18
KMPCV15/12/00CASH
12/31/2015
s/s elbow
19
KMPCV15/12/00CASH
12/31/2015
20
MR D.I.Y
KMPCV16/01/11CASH
1/15/2016
bracket
21
KMPCV16/01/00CASH
1/15/2016
refill filter
22
KMPCV16/01/00CASH
1/28/2016
23
KMPCV16/01/00CASH
1/28/2016
24
CKE HOLDINGS
KMPCV16/01/00CASH
1/31/2016
25
INV11042
2/29/2016
Page 1 of 10
26
KMPCV16/02/00CASH
2/29/2016
27
XIC ENTERPRISE
KN20160105l
2/29/2016
compressor
28
KMPCV16/03/00CASH
3/7/2016
29
SHELL
KMPCV16/03/00CASH
3/31/2016
30
KMPCV16/03/00CASH
3/31/2016
31
KMPCV16/03/00CASH
3/31/2016
on off switch
32
KMPCV16/04/00CASH
4/8/2016
33
KMPCV16/04/00CASH
4/15/2016
silicone sealant
34
XIC ENTERPRISE
KN20160401l
4/16/2016
35
CBN STAINLESS
KMPCV16/04/00CASH
4/27/2016
nipple
36
KMPCV16/04/00CASH
4/30/2016
37
XIC ENTERPRISE
KN20160501l
5/10/2016
38
KMPCV16/05/00CASH
5/27/2016
39
KMPCV16/05/00CASH
5/27/2016
40
KMPCV16/05/00CASH
5/31/2016
41
STANDWELL
KMPCV16/06/00CASH
6/17/2016
42
KMPCV16/06/00CASH
6/25/2016
43
KMPCV16/06/00CASH
6/30/2016
44
ROTIBOY BAKESHOPPE
56990
1/21/2016
45
0000427
4/1/2016
46
CKE HOLDINGS
CBK1605011
5/4/2016
47
CHARTOLE ENTERPRISE
0020160404
4/4/2016
baking tray
48
CKE HOLDINGS
CBK1604007
4/2/2016
sink table
49
CKE HOLDINGS
CBK1604051
4/12/2016
exhaust hood
50
B16-011
4/5/2016
Results
No exceptions were noted in the sample selected.
Except for the audit adjustment passed for supplier invoices not taken up, no other exeption noted from sample selected. Thus, no further testing performed for purchases.
Conclusion
No other exception noted.
Page 2 of 10
COS
d Sample Sizes
4%
32
45
89
Quantity
3%
35
49
97
RM
380.00
22.17
380.00
640.00
20.99
3.21
2.00
24.06
195.99
1.13
191.03
4.01
7.55
18.92
913.02
305.99
239.01
4.25
27.69
1.60
2.83
20.57
30.99
140.00
264.00
Page 3 of 10
37.74
900.00
11.42
20.00
10.00
12.26
88.49
6.13
(230.00)
3.49
18.11
460.00
5.75
4.81
555.99
12.08
11.98
58.02
4,800.00
3,160.00
3,350.00
625.00
1,500.00
4,800.00
425.00
24,487.28
or purchases.
Page 4 of 10
Objective : To determine the materiality level for application to the audit as a whole.
Turnover
Total assets
Profit/(Loss) before tax
Adjustments for unusual items
Adjustments profit/(loss)
* Turnover x 1.5%
* Total assets x 1%
Adjusted profit/(loss) x 10%
Comments
This is a profit making company active in manufacturing, wholesaling and retailing of all kinds of food and beverages.
In view that PBT is too low, we have opted to use turnover as the basis to determine materiality.
Conclusion
The performance materiality level of RM54,000 is reasonable to allow the engagement team to achieve the following :- ensures that the audit is focused to significant areas and therefore less attention will be given to insignificant items
- the nature and extent of audit procedures will be more effective.
I am satisfied that the figure determined above represents appropriate audit materiality level.
Profit before
taxation
10%
Turnover and
total assets
3.00%
2.50%
2.00%
1.50%
1.00%
MATERIALITY
2016
RM
279,545
231,155
4,193
2,312
-
4,000
3,000
400
To obtain evidence that there is proper cut off for revenue recognition
Last five (5) sales invoices in FY 2016 and first five (5) sales invoices in FY 2017.
Exceptions exist where the sales is recognised in the wrong period.
We determined that we need a HIGH level of assurance from targeted testing as no
reliance is placed on controls.
ALL sales invoices issued within our population period are selected to achieve a 100%
coverage.
Invoice Date
Invoice No.
DO No.
Customers
6/24/2016
1819
1819
6/25/2016
1820
1820
FY 2016
7/1/2016
1821
1821
6/27/2016
1822
1822
6/30/2016
1823
1823
Conclusion :
7/12/2016
1824
1824
7/12/2016
1825
1825
7/1/2016
1826
1826
7/1/2016
1827
1827
7/5/2016
1828
1828
The sales invoice is filed in accordance to the invoice number and the cut-off is in order.
Therefore, suggest no further work done.
REVENUE
Amount
RM
Record in GL
correctly ?
Y/N
715.50
316.94
134.82
318.00
63.60
203.52
198.22
180.20
236.38
468.52