Professional Documents
Culture Documents
Client :
Hadidco Co.W.L.L.
Subject :
Period
Prepared by : M .Rashid
Finance Expenses
:
Date
31/12/2006
: 8/4/07
Reviewed by :
Voucher No.
Entry
Type
776
JV
3/30/2006
777
JV
777
Appr.
Posting
Dou.
3,774.747
6/29/2006
4,613.777
JV
9/28/2006
1,349.620
778
JV
12/28/2006
1,312.783
778
JV
12/28/2006
1,979.608
846
JV
12/28/2006
2,149.275
847
JV
12/28/2006
4,461.449
848
JV
12/28/2006
6,946.578
{A}
{B}
{C}
Date
Amount in KD
Total Samples
26,587.837
50,012.423
53.16%
Description
Ensure that the expense amount approved from the responsible person.
posted the amount in correct account.
Ensure that the support documents attached.
Conclusion:As per the above test , Finance Expenses are stated fairly.
Voucher No.
Entry
Type
Date
Amount in KD
Appr.
Posting
Dou.
Description
1,516.057
1,063.437
1,523.643
4,199.459
4,856.233
1,095.001
1,135.620
1,640.311
1,867.670
2,852.986
1,674.169
3,774.747
4,613.777
1,349.620
1,312.783
1,979.608
2,149.275
4,461.449
6,946.578
50,012.423
60003.874
9,991.451
Client :
Hadidco Co.W.L.L.
Period :
31/12/2006
Subject :
Group Companies balances
Describtion
Ref.
Prepared by : M. Rashid
Date
:
Reviewed by :
Balance 2006
K.D
Balance 2005
K.D
Remarkes
Credit balances
1,538.574
4,698.815
Closing Balance
1,538.574
4,698.815
Discribtion
Ref.
Balance 2006
K.D
Balance 2005
K.D
Remarkes
Debit balances
38,952.560
40,908.580
Closing Balance
38,952.560
40,908.580
Confirmatios are required
37,413.986
36,209.765
Prepared by : M. Rashid
2/22/2007
Reviewed by :
: Hadidco Co.W.L.L
Date
Client
Review by
Name
270.000 KD
5
30
30
26
Salaries
5
14
15
26
Leave
Indiminty
Leave taken
Without salaries
With salaries
2005
68
2006
38.180
106.18
0.000
0
2006
2006
2000
========
6
6
0
========
6
Indiminty
75.000
52.500
127.500
}1,324.04 {d
1,324.246
)(0.208
0
0
0.000
0
12
12
4
========
8
8
0
========
8
31
1
=======
30
=========
5
5
0
=========
=======
30
Leave
70.000
52.500
}{d
As company
Diff.
5
5
122.500
16.320
169.477
156.923
12.554
Traced & agreed with the details of this account.
As company
Diff.
}{d
Prepared by :
:
Date
Client
: 31 December 2006
Review by
Period
Name
150 KD
5
21
26
26
Salaries
5
14
15
26
Description
Leave
Indiminty
Leave taken
With salaries
Without salaries
2004
2005
0
0.000
0.000
2006
2006
2006
========
12
12
8
========
31
1
=======
=========
30
0
0
========
0
4
0
========
4
0
=======
30
Indiminty
5
5
6.250
-
0.002
5
5
5.833
5.833
33.654
}{d
36.056
=========
Leave
6.250
}36.058 {d
5.833
As company
33.635
Diff.
0.019
{d} Traced & agreed with the details of this account.
As company
Diff.
Prepared by:
Date
:
: Hadidco Co.W.L.L
: 31 December 2006
M.Rashid
3/20/2007
Reviewed by:
Ref.
Book balance
at 31/12/06
K.D
TOTAL
+
-
+
+
487.868
+
+
31,589.550
410.580
Bank balance
at 31/12/06
K.D
489.868
402.460
Diffrences
Reconciliation
Remarks
K.D
K.D
K.D
(2.000)
Variane between B.S. & B.C.
8.120 Rate Diff. & Bank Charge
620.978
31,589.550
620.978
0.000
0.000
33,108.976
33,102.856
6.120
Dr Balance =
Cr Balance=
33,108.976
33,108.976
Hadidco Co.W.L.L
Cash and cash equivalents at 31/12/2006
Prepared by:
Date
:
M.Rashid
3/20/2007
Reviewed by:
Discribtion
Cash on hand
Petty Cash
Cash at Banks
TOTAL
Ref.
Book balance
at 31/12/06
K.D
19,721.560
Book balance
at 31/12/05
K.D
14,395.820
Diffrences
K.D
5,325.740 conformation
0.000
19,721.560
14,395.820
33,108.976
28,483.830
4,625.146
52,830.536
42,879.650
9,950.886
Remarks
Over Draft
TOTAL
Ref.
Prepared by:
Date
:
M.Rashid
3/20/2007
Reviewed by:
Book balance
at 31/12/06
K.D
Book balance
at 31/12/05
K.D
414,478.655
604,777.000
414,478.655
604,777.000
Diffrences
K.D
(190,298.345)
Remarks
Client
Period
Subject
Prepared by:
Date
:
: Hadidco Co.W.L.L
: 31 December 2006
M.Rashid
3/20/2007
Reviewed by:
Discribtion
Ref.
Book balance
at 31/12/06
K.D
OD
1,994.450
N B K- 0152790220101
OD
137,808.275
AL-AHLI BANK-060007141201
OD
Bkme - 11547796
OD
TOTAL
OD
PN
Bank balance
at 31/12/06
K.D
K.D
(6,938.900)
256,427.608
257,127.608
(700.000)
18,248.322
16,294.322
1,954.000
414,478.655
416,518.550
(2,039.895)
414,478.655
There is reconciliation
Remarks
K.D
144,747.175
414,478.655
Reconciliation
3,645.005
Over Draft =
P. Notes=
(1,650.555)
Diffrences
Objective:
To ensure that Sales are not understated
Entry
no.
Date
1/17/2006
14,367.200
10
1/14/2006
74,977.070
11
1/21/2006
10,300.820
65
2/14/2006
16,287.150
107
3/4/2006
20,051.100
202
4/5/2006
369
6/18/2006
47,630.350
453
7/16/2006
54,175.210
460
7/22/2006
32,901.650
485
7/25/2006
35,907.340
775
########
48,281.400
789
12/6/2006
27,589.260
802
########
29,562.610
814
########
60,661.500
823
########
32.184.805
833
########
38.443.47
amount
39,170.100
posting
app.
Dou.
Client
cash
cash
cash
cash
cash
cash
511,863
4,204,802
12.17%
Audit procedures
We Checked sequence for invoices
A} We Checked correctly Transaction
B} We Checked posting to proper account (Cash account)
C} We Checked monies received are properly banked and correctly recorded in the books(Collecting)
D} We
D}Checked
We Checked
(Z) report
(Z) report
Conclusion:
as per the above test the sales apper to be stated fairly
13
Remarkes
Objective:
To ensure that purchases are not overstated
Remarkes
Suppliers
name
Amount
in
K.D
Approval
Supp.
Doc.
68180
777085
69005
777565
21,106.860
782613
67,119.621
9/10/2006
2110600351
27,807.582
9/10/2006
2110600408
155,793.064
9/10/2006
JV
2110600453
35,638.445
9/10/2006
JV
594
2110600463
74,820.595
9/10/2006
JV
594
69663
48,970.597
9/10/2006
JV
594
2110600701
34,191.077
9/10/2006
JV
594
793341
18,154.997
9/10/2006
JV
594
70184
24,163.568
9/10/2006
JV
594
2110600921
52,539.662
9/10/2006
JV
594
795212
19,329.895
9/10/2006
JV
594
70623
9,892.231
9/10/2006
JV
594
2110601313
21,128.481
9/10/2006
JV
594
28
25,958.000
9/10/2006
JV
594
784666
66,108.777
9/10/2006
JV
715
2110600567
42,458.660
12/18/2006
JV
807
70210
25,368.131
12/18/2006
JV
807
798717
86,900.834
12/18/2006
JV
807
798725
24,078.579
12/18/2006
JV
807
70531
7,738.728
12/18/2006
JV
807
70562
97,645.261
12/18/2006
JV
807
2110601236
33,657.952
12/18/2006
JV
807
Cash
14
Posting
Voucher
No.
Date
Ref.
14,687.000
2/12/2006
PAV
546
88,751.947
9/10/2006
JV
594
17,295.153
9/10/2006
JV
594
35,118.451
9/10/2006
JV
594
9/10/2006
JV
594
JV
594
JV
594
594
Voucher
No.
Ref.
807
JV
Date
12/18/2006
807
JV
807
JV
807
Amount
in
K.D
Posting
Supp.
Doc.
Approval
Suppliers
name
30,222.983
2110601255
12/18/2006
16,546.792
803324
12/18/2006
16,301.756
70757
JV
12/18/2006
83,074.138
2110601393
807
JV
12/18/2006
26,323.185
2110601422
807
JV
12/18/2006
48,624.547
806163
1,397,517.549
3369339.191
41.48%
Audit procedures
A} We vouching Supp. Doc.( Invoices, )
B} We checked goods receipt voucher
C} We ensured Approval
D} We checked posting to proper account
E} We checked payment for suppliers
Conclusion:
As per the above test we observe that purchase appear to be not over stated.
15
Remarkes
16
17
: Hadidco Co.W.L.L
: 31 December 2006
: Review additions to Property, plant and equipment
Objective:
To ensure that the additions to Property, plant and equipment are stated correctly.
Work-Done
We reviewed additions and ensure that property,plant equipments are exist and owned by the company
and used in its operations.
Description
Entry
type
Entry
NO.
Date
pv
541
2/8/2006
Amount Supp.
Approved
in K.D Doc.
In the
name of
company
Posting
and Rec.
Notes
Machines& tools
11,000
11,000
Vehicles
pv
538
2/7/2006
2,965
2005
pv
538
2/7/2006
4,240
2006
7,205
Conclusion:
as per the above test that Additions to Property, plant and equipment are stated correctly.
18
: Hadidco Co.W.L.L
: 31 December 2006
: Property, plant and equipment
Prepared by
Date
Reviewed by
Belding
Cost at 1.1.2006
Additions
Disposal
Cost at 31.12.2006
Accumulated
depreciation at 1.1.2006
Depreciation for the year
Disposal
Accumulated
depreciation 31.12.2006
Net book value
31.12.2006
31.12.2005
Furniture,
equipment
Vehicles
Total
KD
KD
KD
KD
492,295
12,993
9,225
37,450
551,963
1,565
-
11,000
-
7,205
(2,899)
(2,899)
492,295
14,558
20,225
41,756
568,834
(492,294)
(8,875)
(9,117)
(27,745)
(538,031)
(2,122)
-
(2,339)
-
(7,184)
2,898
(11,645)
2,898
(492,294)
(10,997)
(11,456)
(32,031)
(546,778)
1
1
3,561
4,118
8,769
108
9,725
9,705
22,056
13,932
Belding
equipment
Furniture
Vehicles
Rate of depreciation
Years
%
10 20Year
5% - %10
04 Year
25%
04 Year
25%
04 Year
25%
19,770
: M.Rashid
: 20-03-2007
:
Prepared by : A. Ramadan
Date : 5 Aprel 2007
Reviewed by :
Dep. Charge
for the year
2,899.000
(2,898.000)
0.000
2,899.000
(2,898.000)
0.000
Acc. Dep. At
NBV at
31-Dec-06
31-Dec-06
0.000
(2,898.000)
0.000
(2,898.000)
0.000
1.000
0.000
1.000
Proceed
from sales
Gain / (Loss)
Gain
Loss
500.000
499.000
500.000
499.000
0.000
499.000
:Hadidco Co.W.L.L
: 31 Desember 2006
Account Name : Payroll.
Client
Prepared by : M .Rashid
Period
Date
: 3/28/2007
Review by
Objective:
TO ensure that the payroll cost is stated fairly
Monthly analysis of salary cost .
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sep.
Oct.
Nov.
Dec.
Month
amount
5695
6155
5755
5598.1
5895
5500
4070.62
5575
6045
5948.5
5774.23
5669.23
Total
67,680.680
Notes
We vouche the payroll payment for this month which paid cash.
We vouche the payroll payment for this month which paid cash.
We vouche the payroll payment for this month which paid cash.
Work done:
1 - We checked that salaries are correctly posted to the system (expenses ledger - accrued salaries account)
and verified that these amounts ate according to salary statement signed by the GM
2 -Checked sample of payment of salaries . To ensure that these payments are controlled and supported
by authorized documents.
Conclusion:
As per the above test The payroll cost is stated fairly.
24
: Hadidco Co.W.L.L
: 31 December 2006
: general and administrative expenses
Objective:
To ensure that general and administrative expenses are not overstated
Work performed:
Selected a sample of expenses and vouched to supporting documents, and ensured that these
expenses are recorded in the proper account.
Entry
Type
Entry
No.
Date
Amount
in K.D
Posting
Supp.
Doc.
Approval
P.V
935
7/5/2006
720.000
720.000
P.V
1430
12/16/2006
547.800
547.800
P.V
1436
12/19/2006
566.000
566.000
P.V
1286
10/28/2006
540.000
540.000
P.V
1378
11/27/2006
175.000
175.000
J.V
805
12/1/2006
2,482.865
2,482.865
P.V
1444
12/21/2006
260.000
260
P.V
1456
12/25/2006
750.000
750.000
J.V
129
2/28/2006
2,000.000
2,000.000
facilitates charge
J.V
305
5/23/2006
2,500.000
2,500.000
facilitates charge
J.V
572
9/1/2006
25.000
25.000
J.V
847
12/30/2006
234.000
234.000
J.V
847
12/30/2006
2,000.000
2,000.000
P.V
561
6/12/2006
4,250.000
P.V
461
1/3/2006
404.250
404.250
P.V
469
1/8/2006
440.000
440.000
Advertising
rent
transportation
maintenance
4,250.000
25
bank
charge
Remarkes
facilitates charge
Entry
Type
Entry
No.
Date
Amount
in K.D
Posting
Supp.
Doc.
Approval
Remarkes
P.V
473
1/18/2006
643.400
643.400
P.V
1455
12/25/2006
P.V
1462
12/26/2006
147.250
147.250
80.250
80.250
Advertising
rent
transportation
maintenance
bank
charge
4,207.865
4,250.000
1,715.150
1,833.800
6,759.000
total expenses
5,968.865 35,058.438
28,706.880
3,530.550
9,991.451
5.97%
51.94%
67.65%
70.50%
12.12%
Conclusion:
As per the above test we observe that general and administrative appear to be not overstated
26
27
28
Description
Ref.
12/31/2006
12/31/2005
Difference
Difference
%
65,521
74,703
-9,182
-14.0%
Rental expenses
35058.44
43,963
-8,905
-25.4%
Advertisement
5,969
7,280
-1,311
-22.0%
5,358
7,709
-2,351
-43.9%
11,874
11,117
757
6.4%
6,606
7,040
-435
-6.6%
796
796
100.0%
Vehicle expenses
2,407
2,407
100.0%
2,540
1,030
40.6%
entertainment
1,197
1,197
100.0%
Audit Fees
1,750
1,750
100.0%
Bank charges
9,991
9,991
100.0%
1,510
Transportation &Marketing
28,707
30,612
-1,905
-6.6%
Commission
13,880
18,647
-4,767
-34.3%
17,375
17,375
100.0%
general service
4,497
3,921
576
12.8%
Depreciation
11,645
9,986
1,659
14.2%
Fiance Cost
50,012
Management fees
202,929
TOTAL
478,113
216,488
Ref.
12/31/2006
12/31/2005
Difference
Difference
%
225,172
206,502
18,670
8.3%
Management fees
202,929
165,564
37,365
18.4%
50,012
31,125
18,887
37.8%
478,113
403,191
Finance Cost
TOTAL
Prepared by M.Rashid
Date 3/20/2007
Reviewed by :
: Hadidco Co.W.L.L
: 31 December 2006
: Sales, cost of sales and GP analysis
1. Summary of sales, cost of sales and gross profit for the year ended 31/12/2006
Particulars
Ref.
31.12.2006
4,175,172
(3,090,017)
1,085,156
Sales
Cost of sales
Gross profit
Gross profit %
2. sales:
Particulars
Sales
Increase in sales
Increase / (Decrease)percentage
31.12.2005
4,028,943
(3,121,467)
907,476
25.99%
22.52%
31.12.2006
31.12.2005
4,175,172
146,229
4,028,943
(703,986)
4%
-84%
31.12.2006
31.12.2005
3. Cost of sales :
Particulars
Cost of sales
Increase in cost of sales
Increase / (Decrease)percentage
Ref.
T.B
3,090,017
3,121,467
(31,450)
78,583
-1%
2006
2005
2,481,649
3,369,339
(2,760,972)
3,090,017
3,202,125
2,400,991
(2,481,649)
3,121,467
3,090,017
3,121,467
4.Conclusion:
Sales, cost of sales and GP margins are found to be satisfactory.
10%
Description
Ref.
sales
12/31/2006
4,175,172.280
Cost of Sales
12/31/2005
4,028,943.000
(3,090,016.680) (3,121,467.000)
31,450.320
-1%
T. B
71,550.000
190,100.000
(118,550.000)
-166%
1,495.000
1,979.000
(484.000)
-32%
91,075.940
72,132.000
T. B
250.000
415.000
T. B
499.000
Mis. income
T. B
18,943.940
21%
(165.000)
-66%
0.000
499.000
100%
145.800
0.000
145.800
100%
2,335,326.940
2,079,578.000
Revenue
Cost
1,630.000
(135.000)
118,675.000
(27,599.060)
T. B
4.Conclusion:
Sales and other revenue are found to be satisfactory.
4%
Below->
Below->
146,229.280
907,476.000
Difference %
1,085,155.600
other revenue
Revenue from investments.(Divid.)
Revenue from mezzan
TOTAL
Difference
T. B
Net profit
1,495.000
91,075.940
above
Description
Cost of Sales
Ref.
12/31/2006
3,090,016.680
12/31/2005
3,121,467.000
Difference
(31,450.320)
Difference %
-1%
other Exp.
mezzan Exp.
0.000
#DIV/0!
rent Exp.(Leasd)
0.000
#DIV/0!
TOTAL
3,090,016.680
3,121,467.000
Prepared by M.Rashid
Date 3/20/2007
Reviewed by :
: Hadidco Co.W.L.L
: 31 December 2006
: Management fees
Management fees for the year ended 31/12/2006
sales
Ref.
12/31/2006
4,175,172.280
Cost of Sales
4,028,943.000
(3,090,016.680) (3,121,467.000)
1,085,155.600
12/31/2005
907,476.000
Difference
Difference %
146,229.280
4%
31,450.320
-1%
177,679.600
16%
(225,171.621)
(216,488.000)
(8,683.621)
4%
(50,012.423)
(135.000)
(31,125.000)
(18,887.423)
(135.000)
38%
100%
1,630.000
1,979.000
(349.000)
-21%
250.000
415.000
(165.000)
-66%
811,716.556
662,257.000
other income
Revenue from mezzan
Revenue from cut
Net profit for sales , mezzan and cut
percentage of fees as per contract
Management fees
25%
202,929.139
Conclusion:
as per the above Management fees apper to be stated fairly
149,459.556
18%
37,364.889
18%
25%
165,564.250
Client
Period
Subject
: Hadidco Co.W.L.L
: 31 December 2006
: Inventory
Inventory
Des.
Total Inventory
Ref.
12/31/2006
12/31/2005
2,760,972
2,481,649
2,760,972
2,481,649
Difference Difference %
279,323
10%
Prepared by
Date
Review by
: 31 Desember 2006
: Account Payables & other credit balance
Description
Ref.
12/31/2006
Difference
12/31/2005
:M.Rashid
: 20-03-2007
:
Difference
%
Trade Payables
Trade creditors
Other creditors (individuals)
Below->
Below->
Total
7,888.217
7,584.000
304
0
7,888.217
7,584.000
304
202,197.090
12,518.076
4,571.210
40,110.625
169,539.000
2,525.000
2,372.000
700.000
32,658
9,993
2,199
39,411
0
259,397.001
267,285.218
175,136.000
84,261
182,720.000
84,565
Trade creditors
De.
Cr.
3132.77
Net balance
7888.217
4755.447
above
Accrued expenses
De.
Cr.
Net balance
Rents
27,075.000
27,075.000
11,285.625
11,285.625
1,750.000
1,750.000
40,110.625
above
40,110.625
Audit Fees
Total
4%
16%
80%
48%
98%
: Hadidco Co.W.L.L
: 31 Desember 2006
: Account receivables & other debit balance
Description
Ref.
: M.Rashid
: 20-03-2007
:
Prepared by
Date
Review by
12/31/2006
12/31/2005
Difference
%
Difference
Trade Receivables
Trade debtors
Other debtors / Bad Debtors
Below->
T.B
Total
749,452.806
47,921.120
844,391.000
-
797,373.926
(150,000.000)
844,391.000
(150,000.000)
647,373.926
694,391.000
(94,938)
47,921
-13%
100%
0%
Employee Receivables
advance payment for creditors
prepaid Exp.
Refundable Deposits
LC
checkes- ministry of defense
Below->
T.B
T.B
T.B
Total
18,486.000
3,132.770
850.000
100.000
11,358.930
1,208.150
35,135.850
682,509.776
22,000.000
(22,000)
21,020.000
656.000
12,787.000
100.000
169,431.000
1,208.000
(2,534)
2,477
(11,937)
0
(158,072)
0
227,202.000
921,593.000
Trade debtors
De.
Companies
699,504.156
Cr.
Net balance
12,243.836
persons
20,140.550
29,808.100
274.240
749,452.806
above
12,518.076
Total
687,260.320 T.B
20,140.550 T.B
29,533.860 T.B
736,934.730
Employee Receivables
De.
18,486.000
Cr.
202,197.090
Net balance
(183,711.090)
T.B
(192,066)
(239,083)
#DIV/0!
-14%
79%
-1404%
0%
-1392%
0%
: Hadidco Co.W.L.L
: 31 December 2006
: Share capital
2006
Name of the partners
No of
shares
2006
675
750
75
1500
2005
Value
K.D.
2006
No of
shares
2005
Value
K.D.
2005
675,000
750,000
675
750
675,000
750,000
75,000
1,500,000
75
1500
75,000
1,500,000
Client :
Hadidco Co.W.L.L
Subject :
Discribtion
Discribtion
Ref.
Ref.
Reviewed by:
Indemnity
K.D
Indemnity
K.D
Leave pay
Total
K.D
K.D
Leave pay
K.D
Opening balance
Charged to income statement
(Paid during the year)
52,355.690
8,942.320
2,371.690
8,432.620
(6,233.100)
Balance
61,298.010
4,571.210
42
Remarkes
2006
2006/12/31
()
2006/01/01 2006/12/31
2006/01/01
REF
114,480.000
114,480.000
)(298,069.160
)(38.950
)(771.470
)(298,069.160
)(38.950
)(771.470
)(184,399.580
)(184,399.580
1,688,580.000
1.180
1,574,100.000
1.1000
1,431,000
0.2981
0.1050
0.1030
1,000,000
371
7,490
1.606
2,438,861.000
1,574,100.000
1,574,100.000
179,461.000
38.950
771.470
179,461.000
-
1,754,371.420
1,753,561.000
1.100
1,431,000
1,688,580.000
298069.16
38.950
771.470
1.180
1,872,979.580
118,608.160
118,608.160
1,000,000.000
1,000,000.000
!#DIV/0
-
371
7,490
-
7.0%
3,000,000
210,000
1,688,580.000
114,480.000
1431000
1.180
2
3
4
O 100
Hadidco Co.W.L.L
Investments at 31/12/2006
Discribtion
Ref.
Prepared by : M.Rashid
Date
: 18/2/2007
Balance 2005
K.D
Additions
K.D
Disposales
K.D
Changes in
fair value
(33,333.000)
(506,676.840)
-33,333.000
-506,676.840
Balance at 2006
K.D
TOTAL
0.000
2,102,271.168
2,102,271.168
0.000
1,562,261.328
1,562,261.328
#REF!
#REF!
#REF!
#REF!
44
Remarks
K.D
O 100
45