These are a series of articles to offer some basic understanding of our Malaysian Tax audits . (a) Tax Audit and its purpose:- Tax audit is a detailed examination of the accounting and financial records of the taxpayer including third party records to establish that the return submitted by the taxpayer to the Inland Revenue … Read more
What are the criteria to be selected for a Tax Audit? Well, the selection process could involve any or all of the following: HQ instruction policy decisions computerized selection manual selection’ informer based selection Besides the above reasons, other factors that can trigger it include the following: industry analysis informer or information based taxpayer record … Read more
One of the basic audit objectives when we review an organization framework is the proper segregation of duties. Though it is basic, it is by far the most potent as it ensure that errors or irregularities are prevented or detected on a timely basis by employees in the normal course of business. Segregation of duties … Read more
Using the salient points below, perhaps you can establish an internal control questionnaire/checklist for your company’s human resources and personnel expenditure. 1.0 General Policies and procedures for HR management such as recruiting, termination and turnover management should be clearly documented and communicated. 2.0 Planning and Policy An annual manpower budget that addresses the organisation’s future workforce … Read more
One of the key requisites to successfully manage the risks associated with running a business is to have a sound and effective control framework. The existence of such a framework in an organisation encourages a sound control environment in which the business operates. With the increasing levels of corporate governance, the CFO and the CEO … Read more
General · Procedures and policies should be established for general accounting and month end reporting. Monthly Reports · Month-end reporting requirements and their due dates should be clearly communicated. · Monthly management accounts and reports should be reviewed by senior management. · Foreign currency transactions and balances should be translated at approved rates. · … Read more
General Polices and procedures for project initiation, planning, procurement planning, execution and performance reporting should be clearly documented and communicated. Initiation Project managers should be identified and assigned early in project planning, but not later than at the start of project execution. Contractual requirements should be analysed and, where significant, catered for in the project … Read more
General Policies and procedures for credit and collections management should be clearly documented and communicated. Credit Assessment · The credit worthiness of all new credit customers should be evaluated and documented for approvals in the credit assessment forms. · Credit limits of customers must be approved in accordance with the DOA. · The credit assessments … Read more
General Procedures and policies for acquisitions, transfers and disposals of fixed assets should be established. Fixed assets’ useful lives should be clearly defined and be consistent with the Group’s fixed assets policies. Operating units may have different policies subject to the Group Finance Director’s approval. Fixed Assets Register Each operating unit’s finance department must maintain … Read more
Do you want to set up an audit checklist to ensure that there proper internal controls for your company’s Expenditure Cycle? Append below are some suggested salient internal controls points for the Expenditure Cycle: General Policies and procedures for procurement and vendor selection should be clearly documented and communicated. Raising of Purchase Orders, approval of … Read more