Question: This is audit. please help me solve this question. Selion Construction Sdn Bhd (Selion) is in the business of constructing roads, highways and toll gates,

This is audit. please help me solve thisThis is audit. please help me solve this question.

Selion Construction Sdn Bhd (Selion) is in the business of constructing roads, highways and toll gates, collecting toll charges, managing toll system, and providing IT services on assets management to companies and the government of Malaysia. In Malaysia, construction companies undertake the construction of highways and collect toll charges from users for a period of 10-15 years as revenue. Adam & Co is the auditor for the financial year ended 30 November 2020 and you are the audit junior preparing the audit documentation. In the year 2020, most of the conventional audit procedures cannot be carried out because physical presence is not possible due to COVID pandemic. The following are provided to you: (i) The payment to suppliers and financial transactions are undertaken online by the finance department team of Selion while they are working from home. You are not allowed physical access into the company's office and premise due to lockdown situation in Selangor. The Finance Director, Mr Zaini was hospitalised due to COVID and he left all financial reporting responsibility to a senior account executive in the period June to August 2020. Mr Zaini gave you a username and password to allow you the access to the online accounting software for audit purpose. (ii) Selion has a warehouse in Johor and a storeroom in a construction site in Pahang. Crossing of state is not allowed due to lockdown and physical stock-take cannot be undertaken. Therefore, virtual stock-take was conducted in July 2020 and drones are used instead. The images from the drones and virtual stock-take instructions are provided to you. The Chief Financial Officer, Mr Zaini and you did not attend the virtual stock-take while the work is undertaken by an account executive. (iii) The collection of toll payment is mostly done via App or RFID platforms while top- up of credit can be done online. There is no monitoring and reconciliation because the Mr Zaini is confident of the toll system. A counter with a staff is available in each toll gate physically to assist in technical issues encountered and refund for overcharged toll fee. The entire database containing the collection data is provided to you. (iv) The year-end cash count was done physically by an accounts clerk while Mr Zaini and you have observed the cash count via Zoom online. There is not much of cash held on hand mainly due to pandemic lockdown situation and many transactions are done either through online transfers, App and/or RFID. Furthermore, bank reconciliation was not done in the months when Mr Zaini was hospitalised. Required: (a) Your audit partner is concern on the evidence provided by the client, Selion. He has asked you to explain the potential audit risks/issues and audit procedures that you should perform to obtain sufficient and appropriate audit evidence

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