Your audit firm is ABC & Co (you can change your firm's name). You have been assigned one audit job on Real Max Sdn Bhd for the year ended 31 May 2019. The client has provided the financial statements that consist of Statement of Comprehensive Income, Statement of Financial Position and other relevant data. Your manager asks you to perform a full audit on the company financial statements. Therefore, you are required to prepare audit working papers (with proper audit Index, tick marks and cross-referencing) for all relevant items in the Statement of Financial Position and Statement of Comprehensive Income. However, before the audit work can be commenced, your manager also asks you to prepare audit program for the job. Additional Information: There were a number of subsequent events occurred after the closing date and the client has already given the information about the events to the auditor: 1. Provision for the audit fee provided for the year amounting RM8,500. 2. Provision for the directors fee for the year amounting RM3,000. 3. Tax expenses for the year are RM420,000. There is deferred tax amounting RM18,000 shown in tax computation by the Tax Agent of the client. 4. Other operating expenses were wrongly classified as loss on disposal of PPE. 5. Dividend was received RM800,000 for the year due from the investment made by the client. 6. Trade payables and accruals RM204,700 were wrongly classified as rebate and deposit for mixture truck. 7. Directors' emoluments include the following items, and they were wrongly classified in administrative expenses: 1. Salaries & wages - RM89,000 II. EPF & SOCO - RM12,120 ill. Allowances - RM12,000 Required: a) Prepare audit working paper for Real Max Sdn Bhd's financial statements for the year ended 31 May 2019. b) Identify whether each of the additional information given above (number 1 to 7) is an ADJUSTMENT or a RECLASSIFICATION. Show your ADJUSTMENT OR RECLASSIFICATON in your working papers as well as its effect to the financial statements. Make sure that your Statement of Financial Position is balance at the end of audit job. Your audit firm is ABC & Co (you can change your firm's name). You have been assigned one audit job on Real Max Sdn Bhd for the year ended 31 May 2019. The client has provided the financial statements that consist of Statement of Comprehensive Income, Statement of Financial Position and other relevant data. Your manager asks you to perform a full audit on the company financial statements. Therefore, you are required to prepare audit working papers (with proper audit Index, tick marks and cross-referencing) for all relevant items in the Statement of Financial Position and Statement of Comprehensive Income. However, before the audit work can be commenced, your manager also asks you to prepare audit program for the job. Additional Information: There were a number of subsequent events occurred after the closing date and the client has already given the information about the events to the auditor: 1. Provision for the audit fee provided for the year amounting RM8,500. 2. Provision for the directors fee for the year amounting RM3,000. 3. Tax expenses for the year are RM420,000. There is deferred tax amounting RM18,000 shown in tax computation by the Tax Agent of the client. 4. Other operating expenses were wrongly classified as loss on disposal of PPE. 5. Dividend was received RM800,000 for the year due from the investment made by the client. 6. Trade payables and accruals RM204,700 were wrongly classified as rebate and deposit for mixture truck. 7. Directors' emoluments include the following items, and they were wrongly classified in administrative expenses: 1. Salaries & wages - RM89,000 II. EPF & SOCO - RM12,120 ill. Allowances - RM12,000 Required: a) Prepare audit working paper for Real Max Sdn Bhd's financial statements for the year ended 31 May 2019. b) Identify whether each of the additional information given above (number 1 to 7) is an ADJUSTMENT or a RECLASSIFICATION. Show your ADJUSTMENT OR RECLASSIFICATON in your working papers as well as its effect to the financial statements. Make sure that your Statement of Financial Position is balance at the end of audit job