Case
A Delima
Mustapa Kamal Mohd Razali
AiniAman AzbirAbu Bakar Yasmiza Long
It was July, 2006 when Encik Zayed engaged the extemal Auditor Aziz & Co (Chartered Accountant), introduced by his friend to perform the statutory audit for the period 2003 to 2006.That was the first audit experience for Encik Zayed and Puan Hashimah and it was a difficult leaming experience. The Auditors expressed their intention to qualiff the Financial Statements due to several unresolved issues. However, Encik Zayed and Puan Hashimah tried to negotiate with the Auditor to not qualif,' the Financial Statements, failing which Encik Zayed planned to terminate the auditor's appointment and appoint a new "friendly party" auditor. EncikZayedand Puan Hashimah were not familiar withAccounting Standards and the provisions of the Companies Act 1965, including their roles and duties as Company Directors. The company had maintained a very lean organisation and had employed their own family members as employees and some did not have the necessary job experiences.
Time was the essence and the Audited Financial Statements had to be issued to the bank at least by September 2006, as Encik Zayed had applied for banking facilities to implement several contracts the company had managed to secure. Encik Zayed had assigned the tasks to Cik Amy, the Finance Executive who was newly appointed by the company to analyse and provide the Auditors with the necessary clarification and documentation.
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Company Background
.2
Delima Enterprise was founded in 1981 by Encik Zayed.It conducted trading and supplying related products including manpower supplies to the oil and gas industries. Subsequently in 2004, due to encouraging business growth, the enterprise was incorporated as Delima Enterprise Sdn Bhd. The two principal shareholders and controlling directors were Encik Zayed and Puan Hashimah (hdsband and wife). The company activities had expanded into provision ofengineering services as part oftheir
Mustapa Kamal Mohd Razali
AiniAman AzbirAbu Bakar Yasmiza Long
It was July, 2006 when Encik Zayed engaged the extemal Auditor Aziz & Co (Chartered Accountant), introduced by his friend to perform the statutory audit for the period 2003 to 2006.That was the first audit experience for Encik Zayed and Puan Hashimah and it was a difficult leaming experience. The Auditors expressed their intention to qualiff the Financial Statements due to several unresolved issues. However, Encik Zayed and Puan Hashimah tried to negotiate with the Auditor to not qualif,' the Financial Statements, failing which Encik Zayed planned to terminate the auditor's appointment and appoint a new "friendly party" auditor. EncikZayedand Puan Hashimah were not familiar withAccounting Standards and the provisions of the Companies Act 1965, including their roles and duties as Company Directors. The company had maintained a very lean organisation and had employed their own family members as employees and some did not have the necessary job experiences.
Time was the essence and the Audited Financial Statements had to be issued to the bank at least by September 2006, as Encik Zayed had applied for banking facilities to implement several contracts the company had managed to secure. Encik Zayed had assigned the tasks to Cik Amy, the Finance Executive who was newly appointed by the company to analyse and provide the Auditors with the necessary clarification and documentation.
,'
Company Background
.2
Delima Enterprise was founded in 1981 by Encik Zayed.It conducted trading and supplying related products including manpower supplies to the oil and gas industries. Subsequently in 2004, due to encouraging business growth, the enterprise was incorporated as Delima Enterprise Sdn Bhd. The two principal shareholders and controlling directors were Encik Zayed and Puan Hashimah (hdsband and wife). The company activities had expanded into provision ofengineering services as part oftheir