June

Today I finalized the vouching and sampling for Stesen Minyak Ramli. I did another sampling which is staff salary, staff wages, staff allowances, staff bonus and directors’ remuneration. I usually vouch and sample other expenses first and do these salary expenses lastly. I prepared the supporting documents for each expense to be put in the audit file. Next, I also did callover for Chong Ying Ling (Tung Ah). I compared the draft of balance sheet, rental statement, stock certificate, and tax computation that have been typed by admin to ensure that everything is correct and ensure there are no mistakes for the final report.

Then, after I have done with Stesen Minyak Ramli and the callover, I did another audit work for Yong Chong Hong Sdn Bhd. I started by printing out the ledgers for income and expenses because it was in PDF files. After I printed out the ledgers, I then cut the ledgers one by one to separate it according to each expense. This is to make it easier for us to vouch the expenses and so we can easily put index number on each expense separately in the audit file. Then, after I cut the ledgers, I photocopied it again. It took me a lot of time to prepare the ledgers because this client has a lot of expenses compared to Stesen Minyak Ramli, so it took me around two days to prepare the ledgers before I can start vouch it.

Main things that I have learned:

• Today I learned that for sampling, it is better to make the supporting documents to be in portrait mode except for payroll, so that it will be easier for my reviewer to check it.

Today I started to do audit work for Yong Chong Hong Sdn Bhd by comparing opening balance with ledgers. I looked at the balance brought forward amount on the ledgers to make sure that the amount in opening balance statement is same with ledger’s amount. If it is same, I will put ‘OB’ in front of the amount in opening balance statement and ledgers. I only did opening balance today because it was quite a lot. Next, I compared the trial balance with ledgers. This is to check whether client’s ledgers balance brought forward (b/f) agreed or not with our opening balance which we have done before. I looked at the balance brought forward amount on the ledgers to make sure that the amount in opening balance statement is same with ledger’s amount. If agreed with the opening balance, I will write OB in front of the brought forward amount in client’s ledgers and opening balance statement. If not agreed, I will write down the opening balance different in audit memo so it can be checked again. The opening balance for this client was a lot, so I only did that today because I was only worked half day.

Main things that I have learned:

• Today I learned that if there is difference of the amount in opening balance and in the ledgers, I need to put the actual amount besides the opening balance amount. Then, I need to inform the audit staff that will finalize the account so they can check i

Today, I moved on to check whether the balance carried forward (c/f) in ledgers agreed or not to the trial balance that the client has prepared. I looked at the balance carried forward amount on the ledgers to make sure that the amount in trial balance is same with ledger’s amount. If agreed, I will write B in front of the carried forward amount and the trial balance statement. If not agreed, I will immediately refer my reviewer for further action. For this client, their ledger’s balance carried forward amount agreed with the trial balance. After done with opening balance and trial balance, I did the next step which is to compare debtors balance and creditor balance with ledgers. If the amount in debtors and creditors balance is same with amount in ledgers, I will put ‘B’ letter besides both amount. After finished, I doubled checked everything to make sure that I did not miss everything.

Then, I moved to vouch the ledgers against the documents. I started with ledgers for property, plant and equipment (PPE). This year the PPE for Yong Chong Hong Sdn Bhd has increased compared to last year, so I had to vouch eight ledgers for PPE. Because today we only work half day, so I just vouched 4 ledgers of PPE and continued the rest tomorrow. I vouched ledgers for land and building, commercial shop lots, godown and shop renovation, and also motor vehicles.

Main things that I have learned:

• Today I learned that for big companies, it is normal for their opening balance items to be a lot because they have a lot of trade receivables. 

For today, I continued to vouch the rest of PPE’s ledger. I vouched the ledgers for machinery and general equipment, furniture and fittings, equipment, and godown equipment. After done with vouching, I moved to do sampling for PPE where I photocopied all related documents especially the one that has the highest amount so I can use it as supporting documents in the audit file. Usually I will vouch all ledgers first before doing sampling, but for Yong Chong Hong Sdn Bhd, I vouched and then directly did sampling. Next, I highlighted the amount on ledger with its supporting documents so it will be easier to see which amount that I have chosen as samples. Then I arrange the ledgers with its supporting documents so I will not misplaced it and will be easier to give it to my group member who will finalize it.

Main things that I have learned:

• While vouching the PPE ledgers for this client, I learned some new types of PPE that I have never heard before.

Today I still vouched Yong Chong Hong Sdn Bhd where I vouched the ledgers for income. Example of income ledgers that I vouched today was rental income and discount received. After finished vouching the ledgers, I moved to do sampling. This is where I photocopied all related documents especially the one that has the highest amount so I can use it as supporting documents in the audit file. Next, I highlighted the amount on ledger with its supporting documents so it will be easier to see which amount that I have chosen as samples. Then I arrange the ledger with its supporting documents so I can put it in audit file. I also contacted my client to follow up regarding his report and told him to come to the office to sign the documents.

Main things that i have learned:

• N/A

Today I vouched the expenses for Yong Chong Hong Sdn Bhd. For today, I started with some expenses because this company has a lot of expenses to be vouched. I vouched the auditor’s remuneration, bank charges, director’s remuneration, donation & sponsoring and many more. All these expenses are in the payment voucher’s file. So, I need to find each transaction in the ledger at the payment voucher’s file.The next day, I still vouched the expenses for Yong Chong Hong Sdn Bhd. I vouched the credit purchases, return inwards, packing materials, packing wages and salaries, commission and incentives, annual dinner and many more. I also did the extension letter to be sent to LHDN. Extension letter is the letter that we wrote to extend the deadline for submitting all the required documents needed by LHDN. This is because we are currently rushing in completing all accounts together with Form B and Form P as the submission is on 30th June 2023. 

Main things that I have learned:

• Today I got to learn how to do extension letter and learned what should be included in the letter.

For today I only got to vouch some expenses ledgers which are staff salaries and wages, staff allowance, staff welfare, staff bonus and messing allowance. I also vouched the ledgers for EPF, Socso and EIS. For EPF, I just compared the amount in ledgers and amount in the EPF statement. While for Socso and EIS, I calculated the employer and employees portion according to Socso and EIS contribution table. The most important one is Socso because the amount for employer and employee is different in the contribution table. Therefore, I need to see it properly to avoid mistakes. It is kind of easy for EIS because even if we do not see the contribution table, we can divide the amount equally for employer and employee portion because both amount are the same.

Main things that I have learned:

• Today I learned that the amount of Socso and EIS were not the same for each month, so I need to see the contribution table carefully so that the amount for employer and employees portion are correct for every month.

Today I still vouched the expenses ledgers for Yong Chong Hong Sdn Bhd. I vouched the ledgers for telephone and postage, license fee, insurance, water and electricity, printing and stationeries, and many more. After that, I was given a new task which is to help my group member do PCB audit. PCB stands for ‘Potongan Cukai Bulanan’ or also known as Monthly Tax Deduction. Therefore, we had to prepare the documents needed by LHDN on behalf of our client, Far East Construction & Engineering. For this client, the documents asked by LHDN were summary payroll, payment vouchers, financial statements, EA Forms, employee listing, and Penyata Saraan & Potongan Cukai for years 2019, 2020 & 2021. 

Main things that I have learned:

• Today I learned that directors of the company and those who earned RM3,100 and above (monthly) need to pay for PCB.

Today I continued to vouch the vehicle running expenses for Yong Chong Hong Sdn Bhd. There are lots of vehicle running expenses ledgers for this client because it has a few vehicles. I only vouched three or four months inside the ledgers so I can save more time because each ledger contains a lot of expenses. I usually take January, June and December to vouch. I also chose the highest amounts for each month as sampling. I will photocopy the documents (invoices/cash bills/cash sales) as supporting documents in the audit file. After vouched the vehicle running expenses, I did EA Form for year 2020 and 2021 for Far East Construction & Engineering because the EA Form that have been prepared inside the tax file were only for a few employees, while LHDN asked the EA Form for each employee. Therefore, I had to prepare the incomplete EA Forms. 

Main things that I have learned:

• Today I learned how to do EA Form and what items need to be included while preparing the EA Form.

Today I continued to vouch the expenses for Yong Chong Hong Sdn Bhd which is repair and maintenance. After done with vouching the expenses, I continued to do the EA Form for year 2019 as I just got the tax file today. I typed everything by referring to last year’s tax file and looking at employee details, EPF and Socso. After done with year 2019, I double checked everything to ensure that I have keyed in it correctly. After that, I calculated the salary amount for each month for year 2019, 2020, and 2021 that was given by the client and make sure that the amount is tally with Form E that have been prepared in the tax file. 

Main things that I have learned:

• Today I learned that it is important to make sure that the salary amount that was given by the client and the amount of salary recorded in Form E are tally to avoid being penalized by LHDN.

For these two days, I continued to do the PCB audit for Far East Construction & Engineering. I photocopied the payment voucher for salary for year 2019 starting from January until December 2019. I photocopied all payment vouchers for all employees as well as the directors for each month including the bonus. It was quite a lot because this company has many employees. After done photocopied the payment vouchers, I continued to vouch the remaining expenses for Yong Chong Hong Sdn Bhd. The next day, I photocopied the salary payment vouchers for year 2020 and 2021 starting from January to December for each year. Next, I continued to vouch the expenses for Yong Chong Hong Sdn Bhd because it has a lot of expenses to be vouched.

Main things that I have learned:

• Today I learned that it is important to compare the salary and wages amount in Form E and in the payment vouchers prepared by the client to make sure that the amount on both places are tally. If the amounts are not tally, then I need to tell my group member so she can find what is the problem.

Today I still did the PCB audit for Far East Construction & Engineering. I rechecked back the EA Form that I have done before to ensure that I typed everything correctly. I checked the spelling for the employees’ name, their identification number, and the salary or bonus amount. Next, I did the employee listing for employee’s names for each year, 2019 until 2021. My group mate asked the client regarding their employees so we can get their information. This is where I typed the full names for all employees as well as their identification number. I also put date of employment and date of resignation (if any) for each employee.

Main things that I have learned:

• Today I learned how to prepare employee listing as required by LHDN.

While waiting for the next instruction on what should I do for PCB audit, I continued to do sampling for Yong Chong Hong Sdn Bhd because I have done vouched the expenses. I started with photocopying the payment vouchers file because there were lots of sampling that I have chosen in the payment voucher files. Yong Chong Hong Sdn Bhd is a big company that is why they have a lot of expenses. I photocopied all related documents especially the one that has the highest amount so I can use it as supporting documents in the audit file. Next, I highlighted the amount on ledger with its supporting documents so it will be easier to see which amount that I have chosen as samples. Then I arrange the ledger with its supporting documents so I can put it in audit file.

Main things that I have learned:

• N/A

Today, I continued to do the sampling for Yong Chong Hong. For these two days, I photocopied the journal voucher files, receipt voucher files, purchase invoices, sales invoices and other files. It took me a lot of time to photocopy the samples because it has a lot of expenses. After I have done photocopying all files, I rearranged the ledgers with its supporting documents one by one. Next, I highlighted the amount in the ledgers and also in the supporting documents so I know which amount that I have chosen as samples. Then, I made sure that there was no mistakes so I can finalize the sampling today.  I also did some vouching and sampling for Rimbunan Kinabalu Sdn Bhd. It is just a simple task because there’s not much things to vouch. There were only a few ledgers to be vouched, so the sampling was also a little bit.

Main things that I have learned:

• Today I learned that we cannot highlight the client's document directly because some of the clients do not like it. Therefore, we must photocopy all documents first then we can highlight it at the copy.

Today I just rechecked back all expenses that I have vouched and put sampling. I found that there were some problems with the EPF ledger where the amount in the ledger where the amount in the ledger are not tally with the amount in the EPF’s statement. So, I asked my fellow group member on what I should do if there is a problem like this. She told me to put the actual amount from the statement besides the amount in the ledger and also put how much the differences. So, this will make it easier for her to see what the problem is so she can adjust it in the Journal Adjustment. In the Journal Adjustment, she will debited the amount if it undertaken up, and credited the amount if it is overtaken up.

Main things that I have learned:

• Today I learned that I need to put the actual amount from the statement besides the amount in the ledger and also put how much the differences. This will make it easier for the one who will finalize the account to see what the problem is so they can adjust it in the Journal Adjustment.

Today I did the ‘Penyata Saraan & Potongan Cukai’ form for the directors of the company and also the employees whose salaries are RM3,100 and above. I did the form for year 2019, 2020, and 2021. I also learned that I need to divide the amount for 12 months equally. For example, if the benefit in kind amount is RM4,000, I need to divide it by 12 months. Therefore, the amount for each month is RM333.33 and some months will be RM333.34. After I calculated the amount, RM333.33 is for eight months, while RM333.34 is for four months. So the ending amount will become RM4,000. I referred Form E for year 2022 that have been prepared by the audit staff last year to get the gross salary, benefit in kind, EPF and PCB. I need to ensure that the amounts are tally with Form E to avoid penalty.

Main things that I have learned:

• Today I learned how to fill up the ‘Penyata Saraan & Potongan Cukai’ form as I never did it before.

Today I rechecked back the expenses for Yong Chong Hong that I have vouched and provide sampling. Today I noticed that there are differences of amount between the ledger and the supporting document. So, I did some notes on the ledger to notify the person who will finalize the account later on. I also got a new task which is to do the PCB for Dolton Sdn Bhd. I started by copying the report for year 2021 as I only have the latest tax file. I need to wait for the previous tax file to be able to do the year 2020 and 2019.

Main things that I have learned:

• N/A

Today I copied the 2019 and 2020 reports for Dolton Sdn Bhd because I just received the tax file from office boy. After that, I got a new task to vouch Gathering Grill & Chill. Before I do the vouching, I started with comparing ledger and opening balance to make sure that the amount on both the ledger and trial balance are tally. If agreed with the opening balance, I will write OB in front of the brought forward amount in client’s ledgers and opening balance statement. If not agreed, I will write down the opening balance different in audit memo so it can be checked again. For this client, their ledger’s balance brought forward amount agreed with the opening balance.

After that, I moved on to check whether the balance carried forward (c/f) in ledgers agreed or not to the trial balance that the client has prepared. I looked at the balance carried forward amount on the ledgers to make sure that the amount in trial balance is same with ledger’s amount. If agreed, I will write B in front of the carried forward amount and the trial balance statement. For this client, their ledger’s balance carried forward amount agreed with the trial balance. After done with opening balance and trial balance, I did the next step which is to compare debtors balance and creditor balance with ledgers. If the amount in debtors and creditors balance is same with amount in ledgers, I will put ‘B’ letter besides both amount. The expenses for Gathering are not that much, so it just took me two days to vouch it.

Main things that I have learned:

• N/A

Today I continued to vouch the expenses for Gathering Grill & Chill. After I have done with vouching, I did the sampling. I photocopied all documents that need to be put as supporting documents in the audit file. Then, I compiled the documents according to its ledger. After that, I highlighted the amount on the documents as well as the amount on the ledger so the reviewer will know which amount in the ledger has a supporting documents. Sampling sometimes took a long time especially if I chose to sample the amount that has a lot of tiny invoices or bills because I need to arrange it one by one on the photocopy machine. Thankfully for Gathering Grill & Chill all of its supporting documents were easy to photocopy so it did not take me a long time to finish the sampling.

Main things that I have learned:

• N/A

Today I continued to do sampling for Gathering Grill & Chill because there are some documents that I forgot to put tagging, so I did not photocopy it yesterday. So, today I rechecked the ledger and l put tagging to the documents that need to be photocopied. I also helped my groupmate to key in some of the amount in Working Trial Balance (wtb), Current Assets (CA) and Current Liabilities (CL). For the WTB, it is totally different if the company provides a ledger and if the company did not provide any. If they provide ledger, we just need to take the amount from the ledger to record in the WTB. If they did not provide ledger, we need to refer the previous audit file to get the amount that need to be put in WTB. For CA and CL, I referred to previous year audit file and look at the amount for last year’s adjusted balance. The amount for last year is the opening for current year. After finish with sampling for Gathering, I did audit memo asking for documents and other things to client for the PCB audit for Dolton Sdn Bhd such as E Form, EA Form, payroll, and employment list.

Main things that I have learned:

• Today I learned that it is totally different if the company provides a ledger and if the company did not provide any. If they provide ledger, we just need to take the amount from the ledger to record in the WTB. If they did not provide ledger, we need to refer the previous audit file to get the amount that need to be put in WTB.