Fatin Najwa - Tugasan Khusus

INTERNSHIP
SPECIAL ASSIGNMENT
ACADEMIC SUPERVISOR: DR. HAZIANTI BINTI ABD HALIM
TITLE: THE USE OF AUDIT EXPRESS IN FACILITATING AUDIT ROUTINE
AT AL WONG & CO
PREPARED BY:
FATIN NAJWA BINTI NOR AZMAN
D20141066123

TABLE OF CONTENTS
1.0 Introduction ..................................................................................................................... 2
2.0 Audit Express .................................................................................................................. 3
2.1 Overview ..................................................................................................................... 3
3.0 Self-Reflection ................................................................................................................. 5
4.0 Conclusion ...................................................................................................................... 6
5.0 References...................................................................................................................... 7
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1.0 INTRODUCTION
Software is a must for any business regardless of its size. By using a software, the business
can operate more effectively and efficiently to drive competitive edge. Not only that, by using
a software in a daily routine it also can make a business achieve sustainable business growth
that can grow the business to a higher level. By these, we can say that the existence of
software is one of the solutions to encompass features that can contribute to the growth of the
firm as well as the business process.
Software or commonly knows as programs or apps is a set of instructions that enables
between the users and the hardware. It consists of all the instruction that tells the users of how
to operates the hardware. In an engineering term, software is all information processed by the
computers, program and data. Software will always depend on the hardware and vice versa.
They are independent to each other. Without each other, they cannot operate.
Software can be divided into two types which are system software and application
software. System software is an operating system and all utility programs that help to manage
the hardware. It is a preinstalled in the hardware and it let the users interact with the physical
system. Without system software, the devices could not start up and even not operate. To
make it simple, system software is the one that runs the devices and enables the users to use
it. Windows is one of the famous system software in this universe. While application software
is a program or a group of programs that designed for the end user. It is more about the end
user instead of the system itself. It designed based on the user’s desired and in what they
interested in. Application software sit on top of the system software. This is because,
application software could not run without operating systems and system utilities.
The system that will discussed in details is categorized under application system. The
system that designed for certain people to use based on their interest and make the user
easier to complete the works.
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2.0 AUDIT EXPRESS
2.1 OVERVIEW
One of the popular system’s developer in audit field is AXP Solutions Sdn. Bhd.. The main
objective of AXP Solutions in build the system is to help the business in continue the success
by providing necessary tools so that they can serve their customers and business
requirements, and at the same time it can increase the productivity and save tremendous cost.
AXP Solutions is very committed to ensure each business successfulness and satisfaction
with their products, so that they build a quality products and deliver cost-effective, result
oriented service and support based on the unique business needs.
Software that designed by them especially for audit practitioners are called as Audit
Express (AE). It is integrated software programs that will make the works easier and reduce
time taken to complete it. By using AE, it can improve both in speed and quality of undertaking
audit engagement by assist the business to address the major elements of a good system of
quality control as stated by the quality control standards. AE can capture and analyses client
financial data, transforming it into a ready platform so that the business can concentrate on
the real audit. It will link the audit working paper to the final financial statement report.
The major interface of this system divided into three modules which are Professional
Audit Module, Client Management Module and Management Information System Module. All
of these modules will guide the business through the major processes in an audit engagement.
Professional Audit Module will capture and analyses client financial data and transform it into
a ready platform so that auditors can concentrate on the real audit. This module will smartly
link audit working papers to Annual Report, hence improve both the speed and accuracy of
audit process.
For Client Management Module, it helps audit practitioners to manage all their client
information and correspondence, make sure all of the information are the latest and always
up-to-date. This module comprises the Letter Generating Centre and Client Information
Centre. Management Information System Module act as reporting tools that allows audit
practitioners to make informed business decisions. The practitioners will get real-time
information on performance measurements to increase their competitiveness. Each company
need a great and valuable information system to expand the business and be known in the
world.
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Figure 1 Audit Express's Modules
As we can see in Figure 1, Professional Audit Module consists of Database Centre,
Audit Working Paper and Report Editor and Audit Kits and Tuning Centre. For Database
Centre, it stores most of client’s information such as general information, bank’s information
and also firm’s information. For Audit Working Paper and Report Editor, it contains work paper
for all items related to the Balance Sheet and Profit and Loss. This part is the main part to
perform the auditing works. Not only that, it also has a special link to connect all the information
to the final financial statement. Last part for this module is Audit Kits and Tuning Centre. In
this part, it contains the setting to develop preliminary analytical review which works to
calculate materiality level and related ratio.
As mention earlier, Client Management Module consists of Letter Generating Centre
and Client Information Centre. In Letter Generating Centre, it has all various template of letters
and confirmations that need to be submitted to the client after we as audit practitioners
complete the audit. All the information and structure to be presented just need to be amended
based on the situation faced by the company. This part is really a great help in reducing
administrative works. Just a click, all the letters can be generating. For Client Information
Centre, it helps to store all information that need to be presented in the report. There is lot of
reports that can be use in enhancing the relationship between the firm and client.
Management Information System Module only have one part. It functions to keep
tracks of job progress and capture time cost effectively so that the firms could not lose control
on any engagement that been build. Many reports can be generating for management and
decision making purpose such as budgetary control, profitability analysis and engagement
monitoring. All the information provided is accurate and always up-to-date.
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3.0 SELF-REFLECTION
I have been experienced in using AE for almost 4 months, since the day I start my internship,
I have been exposed to it. It took 2 days for me to study by myself on how to use this software
before being teach practically by other senior. As I practice it, I realize that AE is really helpful
to ensure that our work as auditors be easier and can be completed in a time frame that have
been built before we start the audit works.
Why I say by using AE is more useful and easier? Throughout 4 months in AL Wong
& Co., I have made comparisons between using software and manual. I have been applied
these 2 methods in my audit process. I am not sure what are the criteria to choose between
using software and manual. The one that I know, I just follow on how previous year done the
audit because the presentation has to be consistent for each year. However, recently I was
assigned to convert all audit papers that I did manually into the software. Surprisingly, it turns
out very convenient and easy to understand the presentation.
For me, by using manual it is quite complicated because all the values we put in the
working balance sheet and working profit and loss need to be transferred manually into their
respective accounts. Here, we need a high level of accuracy because misplaced amount is a
common mistake. To be honest, I often make mistake while transferring the amount. Another
thing that I realized, we have to key-in the amount repeatedly because the amount does not
link to each other. Not like when we using the software. In AE, we just need to key-in all the
amount once which is when we start audit process, then the amount will be transferred
automatically to the respective accounts. So, we do not have to worried if we misplaced or
overlooked the amount or even to key-in it repeatedly.
As the first step in auditing is complete, then we move to second step which is to do
audit working paper. Audit working paper is to make test in the accounts and sample that been
choose. Using manual method, all the tables and schedules need to build it ourselves in the
Excel. The worse is when for previous audit, the auditor do not make the table because the
case do not occur before but for this year the case arise then as a current auditor, we need to
build it ourselves. From my observation, I realized most of manual working paper are quite
simple then use a software and then I realized why this happen. While in using software, we
do not burden ourselves to build the working papers because all the working paper can be
generated from the software itself. We just need to click the button, then the Excel will be
generating and various type of working papers are inside there. We just need to choose which
working paper that we want to present our test.
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The first problem will occur again when to make adjustment. As for adjustment, we
have to key-in the double entry in a specific form. By using manual, we have to do more things
which are firstly we have to key-in the entry in specific form, then transferred in into their
respective account and recalculate the whole account. Luckily if the formula works for that
account, we just need to key-in the adjusted amount then the formula will work automatically
by themselves but sometimes the formula does not functional, then we need to refresh
manually column by column in the sheet. Common mistake that I found in previous file is the
auditor forgot to transferred the amount to respective account and sometimes they transferred
the wrong amount. This error can make our auditing not relevant. While when using AE, we
only need to key-in the adjusted double entry in the specific form, them all the information and
amounts will be transferred automatically to the respective accounts.
One thing that I love the most when using AE is they can store full information regarding
the principal business, tax agent, company secretary and even the auditors itself. So we do
not need to ask client repeatedly to get all the information. Not only that, all kind of letters and
confirmation can be generate right away from the software. We just need to amend the
information based on our situation, then straight away send it to the client. Last but not least,
AE always follow current financial standard, so no need to worry because all things inside AE
use the latest format of the financial standard.
4.0 CONCLUSION
Audit Express is a new way to make life of people in audit field especially auditors more
flexible, comfortable and convenient. It will definitely shorten the time in completing the audit
and make all the work easier. Increase in speed and quality in audit engagement are the
promises given by the developer, AXP Solutions. Business growth and successfulness is the
thing that AXP Solution wants from all of their client that practice the software they developed.
They are ready to provide more software that can ease everyone.
By using software, it is absolutely will improve the performance of the auditors in
completing their audit works. Not only the performance of the auditors itself, but overall
performance; the auditors and the firms. By using software, it also more convenient than
practice traditional auditing. Traditional auditing takes more time and undoubtedly more
headache. In this technology era, using software is more friendly and up-to-date. We have
flexibility to do our works anytime and anywhere.
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AE have been practiced in AL Wong & Co. for almost 6 years. From my interviewed
with the staff, they agreed that AE make their works more relaxed. Since they practice AE in
their audit routine, they gain more client because AE makes it possible to complete all the
audit engagement. AE help AL Wong & Co. to increase their performance and time by time,
increase the growth of the business.
5.0 REFERENCES
Audit Express’s Quick Reference book.
Brochure of Audit Express by AXP Solutions.
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