Date : 1/6/2023
Day : Thursday
Location : Manufacturing and Assembly Company, Shah Alam, Selangor
Time : 8.30am to 5.30pm
TASKS OF THE DAY
Audit Working Paper – Other Operating Expenses Transaction Test (Invoice)
LESSONS LEARNED / BENEFITS FOR FUTURE / CHALLENGES
By testing other operating expenses, I can contribute to the accuracy and validity of expense recognition, ensuring that expenses are properly recorded, supported by appropriate documentation. This enhances the reliability of financial statements.
Day 45 | 2 June 2023
Date : 2/6/2023
Day : Friday
Location : Manufacturing and Assembly Company, Shah Alam, Selangor
Time : 8.30am to 5.30pm
TASKS OF THE DAY
Audit Working Paper – Other Operating Expenses Transaction Test (Payment Voucher and Bank Clearance)
LESSONS LEARNED / BENEFITS FOR FUTURE / CHALLENGES
Availability and completeness of supporting documentation for other operating expenses can be a challenge, especially when dealing with decentralized expense recording processes or remote locations.
Day 46 | 5 June 2023
Date : 5/6/2023
Day : Monday
Location : –
Time : –
PUBLIC HOLIDAY
Yang di-Pertuan Agong’s Birthday
Day 47 | 6 June 2023
Date : 6/6/2023
Day : Tuesday
Location : Manufacturing and Assembly Company, Shah Alam, Selangor
Time : 8.30am to 5.30pm
TASKS OF THE DAY
Trade Payables Alternative Procedures
LESSONS LEARNED / BENEFITS FOR FUTURE / CHALLENGES
Implementing alternative procedures may involve complex analysis, data gathering, or accessing multiple sources of information. Additionally, time constraints imposed by audit deadlines may add pressure to perform alternative procedures effectively especially on the single payment voucher for more than 20 invoices that not been attached with same documents.
Day 48 | 7 June 2023
Date : 7/6/2023
Day : Wednesday
Location : Manufacturing and Assembly Company, Shah Alam, Selangor
Time : 8.30am to 5.30pm
TASKS OF THE DAY
Other Payables Alternative Procedures
Audit Working Paper – Search for Unrecorded Liabilities
The audit working paper for the search for unrecorded liabilities involves documenting the procedures, findings, and conclusions related to the examination of transactions and events occurring after the balance sheet date to identify any unrecorded liabilities. The objective is to ensure that all liabilities, including those incurred but not yet recorded, are appropriately recognized in the financial statements.
LESSONS LEARNED / BENEFITS FOR FUTURE / CHALLENGES
Trade payables/Other payables alternative procedures refer to the audit procedures implemented when traditional audit evidence for trade payables (such as supplier confirmations) is not available or deemed insufficient. These alternative procedures involve examining other sources of evidence to assess the completeness, accuracy, and valuation of trade payables recorded in the financial statements.
Day 49 | 8 June 2023
Date : 8/6/2023
Day : Thursday
Location : Russell Bedford Office, Mercu 3, KL Eco City
Time : 8.30am to 5.30pm
TASKS OF THE DAY
Audit Working Paper – Revenue Transaction Test (Verification of Sale and Purchase Agreement)
LESSONS LEARNED / BENEFITS FOR FUTURE / CHALLENGES
Sale and purchase agreements can be complex, involving multiple terms, conditions, and contingencies. Understanding and interpreting these agreements accurately can be challenging, especially in industries with unique revenue recognition practices.
Day 50 | 9 June 2023
Date : 9/6/2023
Day : Friday
Location : Work from Home
Time : 8.30am to 5.30pm
TASKS OF THE DAY
Revised Previous Audit Work (Correction, Amendment)
Fill up File Retrieval Form – Non-Profit Charitable Organisation
The task involves completing a file retrieval form for a non-profit charitable organization. The form is used to request and retrieve specific files or documents related to the audit engagement from the organization’s records or archives.
View Last Year CaseWare File
LESSONS LEARNED / BENEFITS FOR FUTURE / CHALLENGES
The task of revising previous audit work emphasizes the importance of learning from mistakes and continuously improving audit processes. It fosters a culture of accountability, professionalism, and dedication to delivering high-quality audit services.
Besides, viewing the last year’s CaseWare file provides valuable insights into the prior audit procedures, work performed, and the organization’s historical financial information. It helps me understand the context of the current audit engagement, identify areas for focus, and ensure continuity and consistency in the audit approach.
Day 51 | 12 June 2023
Date : 12/6/2023
Day : Monday
Location : Russell Bedford Office, Mercu 3, KL Eco City (In-house Audit)
Time : 8.30am to 5.30pm
TASKS OF THE DAY: NON-PROFIT CHARITABLE ORGANIZATION
Worksheet – Substantive Sampling (Expenses)
Sample selection sheet (Expenses)
Audit Working Paper – Other Operating expenses transaction test
Analysis of Expenses
Other Operating Expenses – Audit Procedures
LESSONS LEARNED / BENEFITS FOR FUTURE / CHALLENGES
It is exposure for myself to the non-profit sector: Working with a non-profit charitable organization provided me with insights into the unique challenges and dynamics of the sector. Understanding the specific regulatory requirements and reporting standards for non-profit organizations can broaden my professional expertise and open opportunities to work with similar entities in the future.
Day 52 | 13 June 2023
Date : 13/6/2023
Day : Tuesday
Location : Russell Bedford Office, Mercu 3, KL Eco City (In-house Audit)
Time : 8.30am to 5.30pm
TASKS OF THE DAY: NON-PROFIT CHARITABLE ORGANIZATION
Walkthrough test – Payroll
Audit Working Paper – Analytical review of staff costs (by month and headcount)
Audit Working Paper – EPF reasonableness test
Worksheet – Substantive sampling (Payroll)
Sample selection sheet (Payroll)
Audit Working Paper – Payroll transaction test
Payroll – Audit procedures
LESSONS LEARNED / BENEFITS FOR FUTURE / CHALLENGES
By preparing the audit working paper for analytical review of staff costs, I gained experience in analyzing and interpreting financial data related to staff costs. This skill is transferable to various financial analysis roles, helping me assess trends, identify cost-saving opportunities, and support decision-making processes.
Moreover, performing the EPF reasonableness test and documenting it in the audit working paper provided me with knowledge of EPF regulations and compliance requirements. This expertise will be advantageous in future audits involving employee benefits and retirement plans, ensuring the organization’s adherence to regulatory standards.
Day 53 | 14 June 2023
Date : 14/6/2023
Day : Wednesday
Location : Russell Bedford Office, Mercu 3, KL Eco City (In-house Audit)
Time : 8.30am to 5.30pm
TASKS OF THE DAY: NON-PROFIT CHARITABLE ORGANIZATION
Walkthrough test – Sales and receivables
Worksheet – Substantive sampling (Revenue)
Sample selection sheet (Revenue)
Audit Working Paper – Revenue transaction test (Official Receipt)
LESSONS LEARNED / BENEFITS FOR FUTURE / CHALLENGES
Non-profit organizations often have specific revenue recognition criteria based on the nature of activities and funding sources. Most of the revenues come from sponsorship and donations. Understanding and applying these criteria accurately can be challenging, requiring in-depth knowledge of accounting standards and regulatory guidelines.
Day 54 | 15 June 2023
Date : 15/6/223
Day : Thursday
Location : Russell Bedford Office, Mercu 3, KL Eco City (In-house Audit)
Time : 8.30am to 5.30pm
TASKS OF THE DAY: NON-PROFIT CHARITABLE ORGANIZATION
Statutory Audit – Minutes
Statutory Audit – Statutory Forms
Program – Statutory Records
Worksheet – Audit of Statutory Records
Audit Working Paper – Review of company profile
Confirmation of forms and minutes (Unsigned copy)
LESSONS LEARNED / BENEFITS FOR FUTURE / CHALLENGES
Engaging in tasks related to statutory audit, such as reviewing minutes, statutory forms, and records, provided me with a deep understanding of the specific requirements imposed by regulatory bodies. This knowledge will be beneficial in future statutory audits, enabling me to ensure compliance, assess the effectiveness of internal controls, and provide valuable recommendations to the organization.
Day 55 | 16 June 2023
Date : 16/6/2023
Day : Friday
Location : Russell Bedford Office, Mercu 3, KL Eco City (In-house Audit)
Time : 8.30am to 5.30pm
TASKS OF THE DAY: NON-PROFIT CHARITABLE ORGANIZATION
Audit Working Paper – Revenue transaction test (Bank Clearance)
Worksheet – Substantive sampling (Other income)
Sample selection sheet (Other income)
Audit Working Paper – Other income
LESSONS LEARNED / BENEFITS FOR FUTURE / CHALLENGES
Working on the audit working paper for revenue transaction tests, specifically related to bank clearance, provided me with a deeper understanding of how revenue is verified and reconciled with bank records. This knowledge will be valuable in future audits when assessing the accuracy and completeness of revenue recognition and identifying potential discrepancies.
Day 56 | 19 June 2023
Date : 19/6/2023
Day : Monday
Location : Russell Bedford Office, Mercu 3, KL Eco City (In-house Audit)
Time : 8.30am to 5.30pm
TASKS OF THE DAY: NON-PROFIT CHARITABLE ORGANIZATION
Audit Working Paper – Revenue transaction test (Project Listing)
LESSONS LEARNED / BENEFITS FOR FUTURE / CHALLENGES
Through the revenue transaction test involving project listing, I gained practical knowledge and skills in assessing the appropriateness of revenue recognition for specific projects. This expertise will be valuable in future audits of non-profit organizations that rely on project funding, enabling me to evaluate compliance with funding agreements, track project-specific revenues and expenses, and ensure transparency in financial reporting.
Day 57 | 20 June 2023
Date : 20/6/2023
Day : Tuesday
Location : Russell Bedford Office, Mercu 3, KL Eco City
Time : 8.30am to 5.30pm
TASKS OF THE DAY
Revised Previous Audit Work (Correction, Amendment)
LESSONS LEARNED / BENEFITS FOR FUTURE / CHALLENGES
The task of revising previous audit work, specifically correcting and amending previous audit findings, highlights the importance of ongoing review and improvement in the audit process. It emphasizes the need for accuracy, thoroughness, and attention to detail in conducting audits, as well as the significance of continuous learning and adaptation.
Day 58 | 21 June 2023
Date : 21/6/2023 Day : Wednesday
Location : Russell Bedford Office, Mercu 3, KL Eco City
Time : 8.30am to 5.30pm
TASKS OF THE DAY
Training – ISA 315 (2019) A New Approach to Risk Assessment
LESSONS LEARNED / BENEFITS FOR FUTURE / CHALLENGES
Engaging in training on ISA 315 (2019) provided me with a comprehensive understanding of the updated principles and methodologies for conducting risk assessments in the audit process. This experience highlights the importance of staying updated with professional standards and adapting audit approaches to effectively identify and address risks.
Professional standards, including ISA 315 (2019), often involve complex concepts and technical language. Fully understanding and correctly applying these concepts in practical audit scenarios may require additional study, consultation, or guidance to ensure accurate implementation.
Day 59 | 22 June 2023
Date : 22/6/2023
Day : Thursday
Location : Malaysian bakery chain company, Rawang, Selangor Time : 8.30am to 5.30pm
TASKS OF THE DAY
Amount Checking between Trial Balance and General Ledger
Review Sales Listing from Client (Credit and Cash)
Worksheet – Substantive sampling (Revenue)
Sample selection sheet (Revenue)
LESSONS LEARNED / BENEFITS FOR FUTURE / CHALLENGES
Engaging in tasks such as reviewing sales listings and reconciling amounts between different financial statements develops a keen eye for detail. This attention to detail will benefit future audit engagements by enabling me to effectively identify anomalies, inconsistencies, and potential errors in financial records.
Reviewing sales listings and reconciling amounts can involve handling significant volumes of data, which may be time-consuming and require careful organization and analysis. Managing large datasets efficiently while ensuring accuracy and completeness presents a challenge that requires effective time management and attention to detail.
Day 60 | 23 June 2023
Date : 23/6/2023 Day : Friday
Location : Malaysian bakery chain company, Rawang, Selangor Time : 8.30am to 5.30pm
TASKS OF THE DAY
Worksheet – Substantive sampling (Expenses)
Sample selection sheet (Expenses)
Review Purchases Listing from Client (Credit and Cash)
Worksheet – Substantive sampling (Purchases)
Sample selection sheet (Purchases)
LESSONS LEARNED / BENEFITS FOR FUTURE / CHALLENGES
Expenses and purchases can involve various categories, invoices, and supporting documentation, making the audit process complex. Ensuring accuracy, completeness, and proper recognition of expenses and purchases requires careful analysis and attention to detail. Handling complex transactions presents a challenge that demands thorough understanding of accounting principles and effective communication with the client.
Day 61 | 26 June 2023
Date : 26/6/2023
Day : Monday
Location : Malaysian bakery chain company, Rawang, Selangor Time : 8.30am to 5.30pm
TASKS OF THE DAY
Audit Working Paper – Other operating expenses transaction test
Reasonableness test – rental expense
LESSONS LEARNED / BENEFITS FOR FUTURE / CHALLENGES
The reasonableness test for rental expenses may present challenges if there are no readily available industry benchmarks or if the rental agreements are unique to the organization. In such cases, assessing reasonableness requires additional analysis, consultation, and judgment.
Day 62 | 27 June 2023
Date : 27/6/2023
Day : Tuesday
Location : Malaysian bakery chain company, Rawang, Selangor Time : 8.30am to 5.30pm
TASKS OF THE DAY
Walkthrough test – Sales and receivables
Walkthrough test – Purchases and payables
Audit Working Paper – Cut off test (Sales)
Audit Working Paper – Cut-off test (Purchases)
LESSONS LEARNED / BENEFITS FOR FUTURE / CHALLENGES
Walkthrough tests and cut-off tests provide an opportunity to identify control weaknesses and areas for improvement within the organization’s processes. However, recognizing and effectively addressing these weaknesses can be challenging, requiring tactful communication and cooperation with management to implement necessary changes.
Day 63 | 28 June 2023
Date : 28/6/2023
Day : Wednesday
Location : Malaysian bakery chain company, Rawang, Selangor Time : 8.30am to 5.30pm
TASKS OF THE DAY
Audit Working Paper – Revenue transaction test
LESSONS LEARNED / BENEFITS FOR FUTURE / CHALLENGES
Revenue recognition involves various factors, such as contract terms, delivery of goods or services, and the timing of revenue recognition. Understanding and evaluating the appropriateness of revenue recognition criteria for different revenue streams may pose challenges, requiring a thorough understanding of accounting standards and industry-specific guidelines.
Day 64 | 29 June 2023
Date : 29/6/2023
Day : Thursday
Location : –
Time : –
PUBLIC HOLIDAY
Eid al-Adha Celebration
Day 65 | 30 June 2023
Date : 30/6/2023
Day : Friday
Location : Malaysian bakery chain company, Rawang, Selangor Time : 8.30am to 5.30pm
TASKS OF THE DAY
Audit Working Paper – Purchases transaction test
LESSONS LEARNED / BENEFITS FOR FUTURE / CHALLENGES
Auditing purchases transactions often relies on verifying supporting documentation, such as purchase orders, invoices, and receiving reports. Challenges may arise if the documentation is incomplete, inaccurate, or if there are discrepancies between the documentation and the recorded transactions. Coordinating with the organization’s personnel and suppliers to obtain reliable and complete.
