Auditor Report on Stocktake Attendance

Question

If KTP is appointed after the FYE 31.12.2021, should we qualify the auditor report if the stock is material? if not, what should KTP do?

Opinion :

If the inventory is material to the financial statements, the auditor shall obtain sufficient appropriate audit evidence by either:-

• Attend the physical inventory counting and do the reconciliation of inventory with roll backward procedure; or

• Evaluate the management internal inventory report and perform relevant audit procedures on the report obtained to determine whether it accurately reflect actual inventory count results.

If the results are fairly stated, no qualified opinion shall be issued in the auditor’s report for inventory.

However, if the auditor is unable to perform any physical inventory counting or alternative audit procedures to obtain sufficient and appropriate audit evidence regarding the existence and condition of inventory, the auditor shall modify the opinion in the auditor’s report if the inventory is material but not pervasive.

Source:

ISA 501: https://www.mia.org.my/v2/downloads/handbook/standards/ISA/2018/06/01/ISA_501.pdf

ISA 705: https://www.mia.org.my/v2/downloads/handbook/standards/ISA/2018/08/08/ISA_705_Revised.pdf

Visit Us

Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Book-keeping, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource book-keeping, and payroll services to clients

Website www.thks.com.my
Facebook https://bit.ly/3nQ98rs

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.

Instagram https://bit.ly/3u2PxHg
Facebook http://bit.ly/3rPxz9o

#Ktp #Thks