Hi,

This question is written in Malaysian and English language .

Could you please help me answer it ? ( In English )

Thank you in advance .

SOALAN / QUESTION 3 Istimewa Wholesale Distributing Company is the largest client managed out the Kuala Lumpur office of a Big Four firm. It is a wholesale conglomerate with almost 100 offices in Malaysia, Singapore and Indonesia, as well as correspondent office overseas. The company's records contain more than a million accounts receivable and it processes millions of sales and other transactions annually. The company's computer data centre is in a large, environmentally controlled room that contains several large computer servers and a great deal of ancillary equipment. There are two complete online systems, one serving as a backup for the other, as systems failure would preclude operations in all the company's branches. Consequently, you are an audit manager for Amirah & Co.; the audit firm appointed by Istimewa Wholesale as their external auditor. You must conduct an audit out of the financial statements in accordance with Companies Act 2016 and other rules and regulations. You noticed some sales and cash receipts activities in the annual audit of Istimewa Wholesale Distributing Company as follows: Customer orders are received by the sales order department. A clerk computes the approximate ringgit amount of the order and sends it to the credit department for approval. Credit approval is stamped on the order and sent to the accounting department. A computer is then used to generate two copies of a sales invoice. The order is filed in the customer order file. The customer copy of the sales invoice is held in a pending file awaiting notification that the order was shipped. The shipping copy of the sales invoice is routed through the warehouse, and the shipping department has authority for the respective departments to release and ship the merchandise. Shipping department personnel pack the order and manually prepare a three-copy bill of lading: the original copy is mailed to the customer, the second copy is sent with the shipment, and the other copy is filed in sequence in the bill of lading file. The sales invoice shipping copy is sent to the accounting department with any changes resulting from a lack of available merchandise. A clerk in the accounting department matches the received sales invoice shipping copy with the sales invoice customer copy file from the pending file. Quantities on the two invoices are compared and prices are compared to an approved price list. The customer copy is then mailed to the customer, and the shipping copy is sent to the data processing department The data processing clerk in accounting enters the sales invoice data into the computer, which is used to prepare the sales journal and update the accounts receivable master file. She files the shipping copy in the sales invoice file in numerical sequence. Dikehendaki/Required: i. Bina prosedur audit untuk Ujian Jualan dan Resit Tunai dengan menunjukkan: Construct audit procedures for Tests of Sales and Cash Receipts by demonstrating: - 5 Ujian Kawalan/5 Test of Control - 5 Ujian Urus Substantif/5 Substantive Test of Transactions (10 markah/marks) 4/5 CIA2004 ii. Berdasarkan kajian kes seperti di atas, kenal pasti lima (5) kemungkinan kesalahan atau Penipuan untuk jualan dan lima (5) kemungkinan kesalahan atau Penipuan untuk resit tunai) Based on the case study as above, identify five (5) possible Errors or Fraud for sales and five (5) possible Errors or Fraud for cash receipts. (10 markah/marks) (Jumlah/Total: 20 markah/marks]