May Journal - 2nd Week

WEEK 2

Date: 6 May 2024 - 10 May 2024
Day : Monday - Friday
Location : BDO Office, Level 18, Menara Zurich, HL Sdn Bhd, M Pharmacy Bandar Seri Alam
Time: 8.30 a.m - 5.30 p.m

TASKS OF THE WEEK 

Day 26 ( 6 May 2024)

Scan the Financial Statement, Pro Forma and Accounting Report

After completing the stamping process, I proceeded to scan the Financial Statement, Pro Forma Report, and Accounting Report to create digital copies for record-keeping and distribution. This step was crucial, as it ensured that all approved documents were preserved in a secure format, facilitating easy access for future reference and audits.

While scanning, I made sure to check that all pages were clearly legible and that the stamps did not interfere with any text or figures. This attention to detail was important, as it ensured that the digital versions maintained the integrity of the original documents.

Lessons Learned:

I learned the significance of transitioning between physical and digital documentation. I recognized that maintaining high-quality digital copies is essential for preserving the authenticity of reports and ensuring they are readily available when needed. Additionally, I understood the importance of a systematic approach to document management, as it enhances organization and improves efficiency in retrieving information later on.

HL Sdn Bhd at Plentong

Day 27 ( 7 May 2024)

Updating Test of Control Sales Cycle and Revenue Working Paper

The following day, I was assigned to assist the new audit team, requiring me to visit the client site at HL Sdn Bhd in Plentong. My responsibilities included updating the Test of Control (TOC) for the sales cycle and revising the revenue working papers. This update encompassed K Berhad and its subsidiaries, including PSB ALSB, and HLSB.

Lessons Learned:

From updating the Test of Control (TOC) for the sales cycle, I learned the critical importance of evaluating internal controls in ensuring the integrity of financial processes. This experience highlighted how robust controls can help prevent errors and fraud, ultimately contributing to accurate financial reporting. I also recognized the value of documenting and updating these controls regularly, as it provides a clear framework for assessing the effectiveness of the sales cycle.

Day 28 (8 May 2024)

Updating Outstanding Matter

The next day, I returned to the BDO office to compile a list of outstanding matters, specifically identifying sales invoices that could not be obtained from the client's files. It was essential to create this list promptly, as the senior in charge would send it to the client to facilitate the retrieval of the relevant documents upon our arrival at the client site the following day. I ensured that the invoices requested were not duplicated and organized the list clearly, making it easy for the client to understand.

Lessons Learned:

I learned the importance of clarity and organization when communicating with clients. Creating a well-structured list not only aids in the client's comprehension but also enhances the efficiency of the document retrieval process. Additionally, I recognized the value of thoroughness in double-checking for duplicates to avoid confusion and ensure a smooth workflow. 

Day 29 ( 9 May 2024)

Updating Test of Control Sales Cycle and Revenue Working Paper

The next day, I returned to the client’s office to vouch all the required documents. This involved carefully reviewing and verifying each document against our records to ensure accuracy and completeness. As I worked through the documents, I updated the Outstanding Matters (OSM) list to reflect any documents that the client had successfully provided.

This process underscored the importance of thoroughness in the vouching procedure, as it not only verifies the accuracy of financial statements but also helps identify any remaining gaps in documentation. Additionally, updating the OSM list in real time allowed for clear communication with the client regarding what had been received and what was still outstanding.

Lessons Learned:

From this experience, I learned the significance of maintaining a flexible and organized approach during on-site audits. Adapting quickly to new information and keeping detailed records of what has been provided enhances the efficiency of the audit process. Moreover, I recognized the importance of clear documentation in facilitating effective collaboration between the audit team and the client, ultimately supporting the goal of accurate financial reporting.

Stocktake at M Pharmacy, Bandar Seri Alam

Medicine need to be count

Day 30 ( 10 May 2024)

Stocktake at M Pharmarcy Bandar Seri Alam

The next day, I accompanied my senior, Wen Xuan, to M Pharmacy in Bandar Seri Alam to conduct a stocktake of 20 selected samples, focusing on those with the highest values. The process experienced delays because the person in charge was attending a blood donation event at a nearby school, leaving only two staff members to assist us. While the new recruit was eager to help, her lack of familiarity with the inventory made the process quite time-consuming. We completed the stocktake at 2:00 PM.

Afterward, we ensured that the quantities of the items matched those recorded in the system. If any discrepancies arose which is particularly if the counted quantities were higher than those reflected in the system. We requested supporting documents, such as invoices to validate the differences. Additionally, we needed to obtain a confirmation and signed from the person in charge of M Pharmacy to verify the stock count sheet.

Lessons Learned:

From this experience, I learned the importance of patience and adaptability in the face of unexpected challenges during audits. Delays can occur for various reasons, and being flexible is crucial for maintaining progress. I also recognized the value of thorough documentation and reconciliation processes; ensuring that stock quantities align with system records is essential for accurate financial reporting. Finally, working with new staff highlighted the importance of effective communication as clear guidance can significantly improve efficiency in the stocktaking process.