GROUP 4 - PROJEC MINI ( ASTRO)

 





COMMERCE DEPARTMENT

DPA50153 – AUDIT 2

MINI PROJECT (CLO 2)

  SESSION: 2 2023/2024





















Part C: Finding and Conclusions
Based on the significant changes observed in the financial ratios between 2022 and 2023, you are required to:


1. Verify the potential impact of these variations on the company's business risk, going concern status and any relevant issue.

potential impact of variations on *Astro Malaysia Holdings Bhd* based on available information:

A). Financial Performance:

  • ·         Astro Malaysia's net profit decreased to RM259.04 million from RM460.88 million in the previous year during the fiscal year that ended on January 31, 2023 (FY23). From RM4.18 billion to RM3.80 billion, revenue decreased.
  • ·        Less money from subscriptions and advertising contributed to the revenue drop, which was somewhat offset by higher sales of programming rights.
  • ·         Astro continues to work on its transformation goals, which center on advertising, customer service, connectivity, content, and product. 

B). ESG Risk Rating:

  • ·         Sustainalytics rates Astro's ESG risk as 13.4 (Low Risk). It is ranked 47th out of 302 worldwide media firms.
  • ·         In order to achieve long-term and sustainable growth, the company's sustainability Approach takes into account environmental, social, and governance factors.

C) Social Impact:

  • ·         In FY21 Astro's economic contributions to Malaysia were anticipated to be RM1.8 billion, including employment, taxes, and encouraged expenditure.

 

In conclusion, despite obstacles, Astro persists in adapting, making transformational investments, and enhancing Malaysia's media environment. In determining its business risk and continuing concern status, its financial performance, ESG rating, and social effect are all very important factors. See their yearly reports for a thorough examination.

 

 

2. Prepare the steps would you take to corroborate the information obtained from this analytical procedure with other audit evidence, such as documentation supporting management's assertions and external sources of information.

 

Astro Malaysia Holdings Bhd, auditors follow these steps:

 

A.  A) Review Documentation:

  • ·         Analyze the audit records pertaining to the analytical process. This covers all work documents, notes, and calculations.
  • ·         Verify that the process was carried out accurately and reliably.

 

B.   B)Assess Relevance and Reliability:

  • ·         Assess the applicability of the data acquired. Does it directly connect to the goals of the audit?
  • ·         Take the source's credibility into account. In general, external data is more trustworthy than internal data.

C. c) External Confirmations:

Obtain third-party external confirmations. As an illustration:

  • ·         Verify transactions and balances using bank confirmations.
  • ·         Receivable confirmations: Verify the balances owed by customers.
  • ·         Payable confirmations: Verify the balances owed to suppliers.

 

D.  D) External Sources:

Use data from outside sources that are not affiliated with the entity:

 

·   Reports from analysts: Examine market trends and standards.    

   Comparable information about rivals: Make use of benchmarking informatioN

Recall that the audit view needs solid audit evidence to be supported. To create an informed decision, the quality, quantity, and source of the evidence are all important considerations


3. Explain additional audit procedures would you recommend to understand the underlying reasons behind these variations.

Astro Malaysia Holdings Bhd, auditors can perform additional audit procedures:

A )Substantive Analytical Procedures:

• Examine the financial statistics from this year and previous years. As an illustration:

• Year over year: Examine income, costs, and profitability to find any notable variations.

• To plan or estimate: Compare the actual performance to the anticipated outcomes.

• In response to auditors' predictions: Check figures and hypotheses

 

B) Detailed Testing:

• Carry out thorough testing on particular accounts or transactions:
• Inventory: Examine inventory logs, appraisal techniques, and physical counts to ensure correctness and presence.
• Revenue: Review sales agreements, billing records, and guidelines for revenue recognition.
• Expenses: Examine the supporting documents and expense reports.
• Fixed assets: Examine asset registrations and evaluate techniques for depreciation

 

C) External Confirmations:

• Obtain third-party external confirmations:
• Customers: Verify any unpaid invoices.
• Providers: Verify unpaid invoices.
• Banks: Verify loan amounts and cash balances
• Correspondence: Look into any odd objects

 

D) Industry and Market Research:

  •          Examine market conditions, competitors, and industry trends.
  • ·         Examine the outside variables influencing Astro's performance.

Remember that a combination of techniques yields a comprehensive comprehension of the underlying reasons for variations in financial reports. The goal is to guarantee the accuracy, completeness, and dependability of financial data.




OUR REFRENCE:

THANK YOU













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