A Delima Case Essay


In 1981, Delima Venture was founded simply by Encik Zayed. The primary actions were executed trading and supplying related products which includes manpower products to the coal and oil industries. In 2004, the enterprise was incorporated while Delima Venture Sdn. Bhd. The case started when the firm had properly secured a contract worth RM 750, 000 to become implemented more than duration of 6 months. However , due to shortage of funds, the company got submitted applications to Malayan Banking Berhad and CIMB Bank Berhad for banking facilities total RM1 , 000, 000. The banks required you can actually Audited Economical Statements for the last two years nevertheless Encik Zayed and Puan Hashimah realised that the business had not performed any lawful audit. To perform the statutory audit for the period 2003 to 06\, Encik Zayed engaged the external Auditor Aziz & Co. (Chartered Accountant) in July 06\. Due to several unresolved problems, the Auditors need to meet the criteria the Economical Statements. Encik Zayed and Puan Hashimah tried to work out with the Auditor because company needs the audit to become completed for least by September 2006 to meet the bank's necessity. After screwing up with settlement, Encik Zayed planned to terminate the auditor's scheduled appointment and want to find a new " friendly party”. For analysing and providing the Auditors with the important clarification and documentation, Encik Zayed had employed Cik Amy in May 2006. The lady holds the position as Fund Executive in the company. Your woman was a fresh Accounting finish a local university or college since The spring 2006 and had no doing work experience. Furthermore, Encik Zayed and Puan Hashimah were not familiar with Accounting Standards and the provisions of the Companies Act 1965, including their jobs and obligations as Company Directors. Besides, the company taken care of a very low fat organisation and had employed their own family members since employees and a few did not have the required job experience.

The characters mixed up in story will be Encik Zayed as the Managing Movie director, Puan Hashimah as Primary Operating Official, Puan Balqis as the Operations Supervisor, Encik Salam as your Resource and Administration Supervisor, Cik Amy as the Finance Business and Aziz & Company (Chartered Accountant) as External Auditor.


Insufficient internal control

Company requires internal controls to protect the authority of business transaction, the accuracy of accounting and business records and protection of assets. Problems and prevent scam is one of the benefits from internal control to make sure corporation can reach its goals and objectives.

Segregation of duties. It is important in a provider's management to prevent any activity redundancy, scam, negligence, electric power abuse, and inefficiency in term of timing. Powerful internal control come up when company having segregation of duties. In general, the approval job, the accounting/reconciling task, as well as the asset oversight task must be separated among employees. When ever these functions cannot be separated, a detailed remedies review of related activities is required as a compensating control activity. Segregation of duties is usually prevention to fraud because it requires participation with somebody else to commit a deceptive act.

Improper organisation chart. The organisational graph and or chart was representing the circulation and image of company. Incorrectly drawn and too few positions had been put into the data. The graph and or chart does not include distinct departments showing the organisation by department functions. Crucial positions needs to be added to assure effectiveness and efficiency control especially for Recruiting and Operations Department. Encik Zayed also must clarify position and functions that have in the business.

Record are not properly preserved

Documents are not properly pre-numbered, recorded, and documented. Files not in pre designated that make tough in documenting...

A105 TASK 1 Article