In this part, the students are required to
provide detail explanations on the key learning of what they have experiences
during the learning process period. It is because, this engagement is new experiences
which enable the students to utilise their skill in doing audit related work in
an industry. There are two key learning that I obtain through the process of
UMT- SALIHIN programme. The explanation of the key learning as shown below:

Understanding Step in Preparing an Audit

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During the learning process of course
ACT4995, I learned about the process on how to prepare for an audit which is
require to panning the audit in order to conduct the audit effectively. The
planning of audit includes planned risk assessment procedure and planned
response to the risk of material misstatement. The auditors need to understand
the nature and extent of planning activities that are necessary depend on the
size and complexity of the company, the previous experience with the company
and changes in circumstance that occur during the audit. Then, the audit
planning should be develop by the auditors which include planned nature,
timing, risk assessment, test of control and substantive procedure that
required to be performed. It is to enable the auditor to express an opinion to
form standard unqualified audit report for the client’s company.

As for me, 
when I get the company which is Trail Network Sdn Bhd that I need to
perform an audit, the first step that I should know is understand the nature of
the company also with all the important information before performing an audit
in order to avoid any mistake that would be happen during the audit work. Then,
I must draft the working paper with regard the pilot project template given by
En. Mahdi after gather all of the information regarding the company’s financial
statement. The entire information must be review, analyse and evaluate from
previous year and current year accounting record. In the working paper, the set
of planning materiality level is using a fixed percentage method or based on
table of scale basis in turnover and total assets depends on Salihin Chartered
Accountant guideline and this two method must be choosing whichever is lower
between them. The amount of substantive procedure are depends on the set of
planning materiality in several scenario which is walkthrough and TOC,
walkthrough and no testing. If it has error occurred, it must be
reclassification the error in balance sheet and income statement which must be
recognize in the same year which I have audited. The transaction and adjustment
must be attaching the document sales or agreement rent building or purchasing
assets.

Other than the working paper that have been
provided by En. Mahdi, I also learned to do the correspondences which are:

1.    Audit Planning Memorandum

2.    Engagement Letter

3.    Bank Confirmation

4.    Director Remuneration And Shareholding

5.    Director Confirmation

6.    Letter of Presentation

7.    Appointment Letter

8.    Summary Review Memorandum      

 

In addition, I have learned to do the audit
report which the auditor must choosing the appropriate audit report to issue an
opinion on the validity and reliability of a company’s financial statement. The
goal of an auditor’s report is to document a reasonable assurance that a company’s
financial statements are free from error. The auditors’ report has three main
types which are unqualified report opinion, qualified report opinion and
adverse report opinion. Within the report, I learned that the auditor can share
any reservations about the condition of the company’s finances or relevant
additional information. The reservation will arise if the auditors disagree
with something found in the financial statement. The auditor’s report must
adhere to the accepted standard and regulations. A typical auditor’s report
will state:

1.    The company that has been audited and what their
accounting method is

2.    The responsibility of the auditor and their report

3.    Reservation (if any)

4.    Conclusion

5.    Any additional information

6.    A management report

7.    The date and auditor’s signature

Understanding the Quality of Teamwork

All teams are group, but all groups are not
necessarily teams. Groups might share common characteristics or be related to
one another in some way but a team share a goal, regardless of any mutual
support traits. As for me, when I have been given a task to complete with a
team member, it already make me feel facilitate to complete the task required.
The work done by a group of people will become more effective and high quality.
During the academic period, the first task that I need to do is to re-audit the
company within a group of 5 person.  It
is after the learning session of property, plant and equipment and account
receivable. We need to apply the knowledge that we get through the learning
session by En. Mahdi. The company that we choose at that time is Arkitek Ekhwan
which we need to re-audit by using the template of ‘Pilot Project’ given by En.
Mahdi. We need to re-audit the property, plant and equipment and account
receivable of Arkitek Ekhwan. We divide the work equally to do the task which
is three of us audit on property, plant and equipment and another two audit on
account receivables, then we will teach each other what and how we do it.

For the next task, I have been given a task
to do full audit on a company with a partner. The company that I need to audit
is an active company, Trail Network Sdn Bhd which is it do have quite a lot of
transaction with a huge amount of money. Because of I need to audit the company
with only to person in a group, it make me and my partner struggle a lot to
done a real practices of audit to that company. We need to do a lot of
revision, ask to the former student of this course, ask our supervisor and
discuss among us. Before this we only learnt the theoretical concept of an
audit but for this task we need to do the real practices of an audit which we
do not know how to do that in order to complete it on time. 

Without the teamwork from the team member on
that time, we cannot manage to finish it because the task is quiet hard since
we do not how to apply it to the real practice of audit. The quality of
teamwork that I get through the academic period is really precious since as an
auditor the teamwork plays an important role not only within the partners, managers
but also the entire team including trainees which expected to apply an equal
level of scepticism when auditing a client. This calls for continuous
professional education and training of staff because in fact, attracting and
retaining the right talent is a top priority for most audit firms. Therefore,
it enable me to have an early experienced before got to an internship programme.